For a Bank to Have Lending Power, Its Required Reserves

question 116

Multiple Choice

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

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

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Definitions:

Hair Cells

Sensory cells found in the inner ear that convert sound vibrations into electrical signals, aiding in hearing and balance.

Olfactory Receptors

Specialized nerve cells in the nose involved in the sense of smell.

Audition

The perception or action of listening.

Vestibular Sense

A sensory system located in the inner ear that contributes to balance and spatial orientation by detecting changes in motion and gravitational forces.