The Most a Bank Could Lend at Any Time Without

question 12

Multiple Choice

The most a bank could lend at any time without altering its assets is an amount equal to its:

• A) checkable deposits.
• B) reserves.
• C) excess reserves.
• D) net worth.

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Definitions:

Discount Date

The date on which a payment must be made in order to receive a discount for early payment under specified terms.

Due Date

The specified date by which an obligation, such as a bill or assignment, must be completed or paid.

Remittance

The process of sending money in payment or as a gift, often referring to funds that are sent by migrants back to their country of origin.

Discount Period

The time frame within which a payment can be made at a reduced rate before the full invoice amount becomes due.