Whenever Actual Reserves Exceed Desired Reserves, the Bank

question 81

Multiple Choice

Whenever actual reserves exceed desired reserves, the bank

• A)can make new loans.
• B)will go out of business.
• C)needs to call in loans.
• D)will borrow funds from another bank.
• E)will raise the interest rate on its loans.

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Definitions:

LFT

Liver Function Tests, a group of blood tests that evaluate the health and performance of the liver by measuring levels of enzymes, proteins, and substances in the blood.

Disputing Irrational

A cognitive-behavioral therapy technique aimed at challenging and modifying irrational beliefs and thoughts.

Substance Use

The consumption of drugs or alcohol, which can range from moderate use to dependency and addiction.

Socratic Questioning

A method of questioning used to stimulate critical thinking, uncover underlying beliefs, and challenge assumptions, based on the teaching style of the ancient Greek philosopher Socrates.