A Bank with Insufficient Reserves Can Increase Its Reserves by

question 5

Multiple Choice

A bank with insufficient reserves can increase its reserves by

• A)lending federal funds.
• B)calling in loans.
• C)buying short-term Treasury securities.
• D)buying municipal bonds.

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Definitions:

ATP

Adenosine triphosphate, a crucial molecule in cellular energy transfer that drives various biological processes by providing energy.

Oxygen

A chemical element (O) essential for aerobic respiration in living organisms and accounting for about 21% of Earth's atmosphere.

NADH Reductase

An enzyme involved in the electron transport chain that helps in the transfer of electrons from NADH to other molecules.

Hydrogen Ions

Positively charged ions (H+) that play a significant role in chemical reactions, pH balance, and cellular processes.