A Bank Finds Itself Short of Required Reserves and Therefore

question 60

Multiple Choice

A bank finds itself short of required reserves and therefore borrows from another commercial bank. The interest rate on this loan is

• A) zero.
• B) the prime rate.
• C) the discount rate.
• D) the federal funds rate.
• E) the required reserve ratio.

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Definitions:

Social Emotions

Emotions that cannot be understood or defined without reference to the social world; emotions that (1) involve an awareness of oneself in the social context, (2) emerge out of interaction with at least one other actor, and (3) are often experienced in reference to some kind of societal standard.

Societal Standard

Norms and expectations established by society that guide the behavior of its members, often reflecting shared values or beliefs.

Universally Across Cultures

Referring to concepts, practices, or feelings that are found in all human cultures worldwide, without exception.

Evolutionary Nature

The inherent qualities or characteristics determined by genetic inheritance and natural selection that influence behavior and development.