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

question 102

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.
• D) repay its discount loans from the Fed.

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Definitions:

Issue Jurisdiction

A legal term that refers to the authority of a court to hear and decide on a specific type of legal issue.

Joint Committees

Committees formed from members of both chambers of a bicameral legislature, tasked with conducting studies or performing duties beyond the purview of a single chamber.

Present Legislation

The body of laws and regulations currently in effect within a governmental jurisdiction.

Filibuster

A political tactic used in legislative assemblies to delay or prevent a vote on a proposal by speaking at length.