What Happens When You Withdraw Cash from a Bank

question 89

Multiple Choice

What happens when you withdraw cash from a bank?

• A) The bank's reserves are reduced.
• B) The bank's reserves are increased.
• C) The bank's reserves are not affected.
• D) The bank's total reserves remain unchanged but the composition of required reserves and excess reserves change.

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Definitions:

Sustainability

Involves practices and strategies that meet present needs without compromising the ability of future generations to meet their needs, highlighting environmental, economic, and social dimensions.

Economic Results

The outcomes related to the financial performance and economic health of a business or economy, reflecting growth or challenges.

Profitability

Profitability is a financial metric indicating the degree to which a company or business activity yields profit, comparing revenue against expenses over a specific period.

Tier 2 Environmental Costs

The indirect costs associated with environmental impacts and resource use that are not directly tied to a company's operations, such as societal or external environmental costs.