Excess Reserves Make a Bank Less Vulnerable to Runs, but Bankers

question 125

Multiple Choice

Excess reserves make a bank less vulnerable to runs, but bankers do not like to hold excess reserves because holding excess reserves

• A)are disliked by depositors.
• B)means lower profits for banks.
• C)are discouraged by government regulators.
• D)All of the above are correct.

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Definitions:

Phenomenology

The study of individuals’ own unique, first-person, conscious experience.

Unconscious Dynamics

The underlying psychological processes and conflicts influencing behavior and thought that are not within an individual's conscious awareness.

Behavioral Assessment

The process of observing, measuring, and documenting a person's behavior to understand and address psychological issues.

Cognitive Appraisal

A mental process wherein an individual evaluates and interprets an event or situation, influencing their emotional response.