Banks May Borrow from or Lend to Another Bank in the Federal

question 7

Multiple Choice

Banks may borrow from or lend to another bank in the Federal Funds market. A loan of excess reserves from one bank to another bank is recorded as a(n) ________ for the borrowing bank and a(n) ________ for the lending bank.

• A)asset;asset
• B)asset;liability
• C)liability;liability
• D)liability;asset

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Definitions:

Cognitive Development

The construction of thought processes, including remembering, problem solving, and decision-making, from childhood through adolescence to adulthood.

Disequilibrium

The state of being out of balance or lacking stability, often used in contexts of cognitive development or economics.

Assimilation

In cognitive development, it's the process of taking in new information and incorporating it into existing cognitive schemas.

Accommodation

Adjusting one's behaviors or actions to incorporate the needs or expectations of others, or making physical space suitable for some purpose.