The Huge Jump in Depository Institutions' Reserves at the Fed

question 134

Multiple Choice

The huge jump in depository institutions' reserves at the Fed in recent years can be attributed to _____

• A) the Fed paying a small amount of interest on its excess bank reserves.
• B) the Fed charging a small amount of interest on its excess bank reserves.
• C) the Fed purchasing securities from the banks.
• D) the banks feeling insecure about creating new loans.
• E) the uncertainty of banks about their ability to manage their funds.

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Definitions:

Completely Controlled

Refers to a state or situation where all aspects are governed or regulated entirely without any autonomy or randomness.

Selfish

Concerned excessively or exclusively with oneself, without regard for the well-being of others.

Psychosexual Development

Sigmund Freud's theory of the stages of child development, each characterized by a focus on pleasure from a specific area of the body, shaping personality.

Phallic Stage

A phase in Freud's psychosexual development, occurring from about ages 3 to 6, where the libido (sexual energy) focuses on the genital area.