Because Generate Very Little Income, Banks Hold a Portion of Their

question 78

Multiple Choice

Because generate very little income, banks hold a portion of their assets in this form.

• A)securities; large
• B)loans; small
• C)reserves; small
• D)buildings; large

---

Definitions:

Utility Maximization

The economic principle that individuals or firms attempt to allocate their resources in a manner that maximizes their satisfaction or profit.

Marginal Utility

The supplementary enjoyment a consumer experiences when they consume an extra unit of a good or service.

Budget Constraints

Budget constraints represent the limitations on the spending choices of consumers based on their income and the prices of goods and services.

Total Utility

The overall satisfaction a consumer receives from consuming a particular quantity of goods or services.