Whenever a Bank's Actual Reserves Exceed Its Desired Reserves, the Bank

question 198

Multiple Choice

Whenever a bank's actual reserves exceed its desired reserves, the bank

• A) can lend out additional funds.
• B) needs to call in loans.
• C) will go out of business.
• D) must increase the amount of its required reserves by obtaining more cash.

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Definitions:

Statutory Novation

The replacement of an obligation to perform under a contract with a new obligation or party, as recognized by statute.

Effective Assignment

A transfer or allocation that fully accomplishes its intended purpose, often relating to tasks, responsibilities, or legal rights.

Statutorily Assigned

Designated or assigned by law or statute in a formal manner.

Notice of Assignment

A formal notification indicating that a particular assignment of rights or interests has been made.