Which of the Following Is the Source of Funds for Bank

question 49

Multiple Choice

Which of the following is the source of funds for bank loans?

• A) marketable securities
• B) required reserves
• C) excess reserves
• D) bank capital

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Definitions:

Misallocation

The inefficient distribution or use of resources, often leading to suboptimal economic outcomes.

Nominal Gain

The increase in the monetary value of an asset or investment without adjusting for inflation, representing a simple difference in price.

Real Gain

The increase in value or profit after adjusting for inflation or other external factors that affect purchasing power.

Price Level

The overall level of prices of goods and services in an economy at a given time, often measured by a price index.