If,after a Deposit Outflow,a Bank Needs an Additional $3 Million

question 76

Multiple Choice

If,after a deposit outflow,a bank needs an additional $3 million to meet its reserve requirements,the bank can

• A)reduce deposits by $3 million.
• B)increase loans by $3 million.
• C)sell $3 million of securities that the bank currently owns.
• D)repay its discount loans from the Fed.

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Definitions:

The PsychENCODE Project

A research initiative designed to uncover the mechanisms underlying neuropsychiatric disorders by exploring the human brain's complexity.

Magnetic Fields

Invisible fields that exert force on particles that are magnetic in nature or moving electric charges.

Electrical Activity

The movement of electrically charged particles, such as electrons, which is fundamental to the operation of various biological systems and electronic devices.

EEG

Electroencephalography, a method to record electrical activity of the brain using electrodes placed on the scalp.