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Thermostats are being discussed. Technician A says that a stuck closed thermostat may cause engine overheating. Technician B says that it is possible to test a thermostat by submerging it in a container of water while heating it and watching a thermometer. Who is correct?
Excess Reserves
These are bank reserves held in excess of what is required by regulations, which can be lent out to generate income.
New Loans
Financial amounts borrowed by individuals, businesses, or governments, typically from banks or financial institutions, that have not previously existed in the market.
Required Reserve Ratio
The fraction of deposits that banks are mandated by the central bank to keep on hand as reserves, rather than loaning out.
Total Reserves
The sum of a bank's deposits held at the central bank and the cash held in vaults.
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