In Order for a Bank to Earn as Much Profit

question 70

Multiple Choice

In order for a bank to earn as much profit as possible, its excess reserves should be:

• A) equal to its required reserves.
• B) as small as possible.
• C) less than its vault cash.
• D) growing at a constant rate.

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Definitions:

Contract Law

Contract law is the body of law that governs the creation, enforcement, and interpretation of agreements between parties, defining obligations mutually agreed upon.

Repealed

Describes a law or regulation that has been officially revoked, cancelled, or annulled by legislative action.

Restraint Of Trade

Legal term referring to contractual obligations that limit a person’s freedom to engage in business activities with others, often scrutinized for its impact on free trade.

Contract Law

The collection of legal principles that oversees the formation, implementation, and understanding of contracts between individuals.