Banks Will Hold Additional Excess Reserves When

question 180

Multiple Choice

Banks will hold additional excess reserves when

• A)loans to customers look safe and interest rates are high.
• B)they anticipate a bank audit.
• C)loans to customers look risky and interest rates are low.
• D)the economy is booming and there is a large demand for loans.

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Definitions:

Franklin D. Roosevelt

The 32nd President of the United States, serving four terms from 1933 to 1945, and famous for implementing the New Deal to combat the Great Depression.

Stephen Skowronek

A political scientist known for his work on presidential leadership, political time, and the dynamics of American political history.

Political Change

The transformation in the governing structure, policies, or political culture of a country over time.