If Many Banks Fail, This Is Likely To

question 31

Multiple Choice

If many banks fail, this is likely to:

• A)cause surviving banks to lower their ratios of reserves to deposits.
• B)cause surviving banks to raise their ratios of reserves to deposits. have
• C)no effect on the ratios of reserves to deposits in surviving banks.
• D)cause surviving banks to hold less currency.

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Definitions:

Influences

The capacity to have an effect on the character, development, or behavior of someone or something, or the effect itself.

Mass Communication

is the process of creating, sending, receiving, and analyzing messages to a large audience through various mediums.

Radio Station

A service that broadcasts radio waves to provide audio content to the public over a certain frequency.

Broadcasting

The distribution of audio or video content to a dispersed audience via any electronic mass communication medium, typically using the electromagnetic spectrum, in a one-to-many model.