For a Bank to Have Lending Power, Its Required Reserves

question 94

Multiple Choice

For a bank to have lending power, its required reserves must:

• A)be smaller than its legal reserves.
• B)exceed its legal reserves.
• C)be smaller than its excess reserves.
• D)exceed its excess reserves.
• E)exceed its vault cash.

---

Definitions:

Parasympathetic Ganglia

Clusters of neurons in the parasympathetic nervous system that regulate bodily functions to conserve energy and maintain homeostasis.

Terminal Ganglia

Nerve cell clusters located near or within the organs they innervate, involved in the autonomic nervous system.

Parasympathetic Fibers

Nerve fibers of the parasympathetic nervous system that regulate body functions, promoting rest and digestion.

Hypoglossal Nerve

The twelfth cranial nerve responsible for motor control of the tongue, essential for swallowing and speech.