A Bank Failure Is Less Likely to Occur When

question 1

Multiple Choice

A bank failure is less likely to occur when

• A)a bank holds less U.S. government securities.
• B)a bank suffers large deposit outflows.
• C)a bank holds fewer excess reserves.
• D)a bank has more bank capital.

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Definitions:

Free Trade Zone

A designated region where goods can be imported, handled, manufactured, and re-exported under specific customs regulation but generally not subject to customs duty.

APEC

The Asia-Pacific Economic Cooperation, a forum for 21 Pacific Rim member economies that promotes free trade throughout the Asia-Pacific region.

Internal Environment

The conditions, entities, events, and factors within an organization that influence its activities and choices.

Business Strategy

A plan of action designed to achieve a long-term or overall aim of the business, considering internal and external factors.