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.

---

Definitions:

Probabilities

The quantification of an event's occurrence likelihood, represented as a figure from 0 to 1.

Intersection

The set that contains all elements that are common to two or more sets.

Probability Values

Numerical measures indicating the likelihood of a specific event occurring, ranging between 0 and 1.

Penny Tossed

An experiment often used to explain basic concepts of probability, usually involving the outcomes of flipping a coin.