If a Bank's Reserve Ratio Is Increasing

question 186

Multiple Choice

If a bank's reserve ratio is increasing,

• A)reserves must be increasing.
• B)deposits must be decreasing.
• C)the rate of change in reserves must exceed the rate of change in deposits.
• D)the rate of change in deposits must exceed the rate of change in reserves.

---

Definitions:

Profits

Profits are the financial gains obtained when the revenues generated from business activities exceed the expenses, costs, and taxes needed to sustain the operation.

Entrepreneurial Ability

The skill or talent for identifying new business opportunities and the willingness to take risks to develop and manage a business.

Production Technique

The method or process used by a company or industry to create goods or services, often involving specific technologies or procedures.

Price Of Labor

The wages or salary that workers receive in exchange for their labor or services in the job market.