A Bank Is in the Position to Make Loans When

question 190

Multiple Choice

A bank is in the position to make loans when required reserves

• A) equal actual reserves.
• B) equal excess reserves.
• C) are less than actual reserves.
• D) are greater than actual reserves.

---

Definitions:

Total Utility

The entire pleasure derived from using a certain aggregate quantity of a good or service.

Consumer Surplus

The difference between the maximum price consumers are willing to pay for a good or service and the actual price they do pay.

Marginal Utility

The additional satisfaction or utility gained from consuming one more unit of a good or service.

Total Utility

The total satisfaction received from consuming a certain amount of goods or services.