A Bank Increases Its Level of Required Reserves by

question 57

Multiple Choice

A bank increases its level of required reserves by

• A) selling securities.
• B) increasing borrowings.
• C) taking checkable deposits.
• D) none of the above.

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Definitions:

Synesthesia

A condition in which stimulation of one sense also evokes another.

Different Smells

The perception of odors, which is processed by the olfactory system in the brain.

Colors

Visual perceptions that result from the way an object reflects or emits light into the eye, categorized in terms such as hue, saturation, and brightness.

Trichromatic Theory

A theory of color perception that proposes three mechanisms in the visual system, each sensitive to a certain range of wavelengths; their interaction is assumed to produce all the different experiences of hue.