Banks Normally Hold Few Excess Reserves Because This Practice Is

question 56

Multiple Choice

Banks normally hold few excess reserves because this practice is:

• A) subject to an excess reserves tax.
• B) not profitable.
• C) against Fed policy.
• D) illegal.

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Definitions:

Thomas Malthus

An English cleric and scholar influential in the fields of political economy and demography, best known for his theory that population growth would outstrip food supply, leading to societal constraints.

Population

The total number of people inhabiting a specific area or country, including their demographic characteristics.

Starvation

A condition resulting from a severe deficiency in caloric energy, nutrient, and vitamin intake, leading to death if not addressed.

Bourgeoisie

The social class that came to own the means of production during modern industrialization, typically referring to wealthier members of society or the middle class.