Excess Reserves Are Put to Use by a Bank When

question 145

Multiple Choice

Excess reserves are put to use by a bank when it

• A)puts cash in the vault to back existing loans.
• B)pays off the mortgage on its building.
• C)sells government securities.
• D)makes loans to its customers.

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Definitions:

Exemplar

A specific instance, example, or case that is representative of a concept, category, or phenomenon.

Schema

An organized framework for representing knowledge that typically includes characters, plots, and settings and incorporates both general knowledge about the world and information about particular events. See also script and story grammar.

Classical

Often referring to classical conditioning, a learning process that occurs through associations between an environmental stimulus and a naturally occurring stimulus.

Family Resemblance

The concept of how members of a category share certain characteristics, though there may be no single characteristic common to all.