Which of the Following Is a Bank Liability

question 91

Multiple Choice

Which of the following is a bank liability?

• A) Required reserves.
• B) Excess reserves.
• C) Actual reserves.
• D) Checkable deposits.
• E) Loans.

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Definitions:

Wealth Effect

The Wealth Effect is an economic theory suggesting that consumers tend to spend more when their wealth increases, due to rising home values or stock market investments, influencing overall economic activity.

Interest-Rate Effect

The impact changes in the interest rate have on consumer spending and saving decisions, influencing the overall economy.

Exchange-Rate Effect

The impact of changes in the exchange rate on a country's international trade and economic activity, particularly how depreciation can increase exports and reduce imports by making domestic goods cheaper for foreigners and foreign goods more expensive for domestic consumers.

Money Market

A segment of the financial market where short-term financial instruments with high liquidity are traded.