Excess Reserves Are Put to Use by a Bank When

question 145

Multiple Choice

Excess reserves are put to use by a bank when it

• A)puts cash in the vault to back existing loans.
• B)pays off the mortgage on its building.
• C)sells government securities.
• D)makes loans to its customers.

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Definitions:

Willing

Generally refers to being prepared or inclined to do something, indicating a readiness or acceptance.

Public Good

Public goods are goods that provide benefits to all members of a society, without the ability to exclude individuals from enjoying the benefits, such as clean air or national defense.

Marginal Benefit Curve

A graphical representation showing how the benefit to consumers changes as the quantity of a good consumed increases.

Society's Welfare

Refers to the overall well-being and quality of life of the people in a community, including factors like health, economic stability, and social relationships.