When a Bank Receives Deposits

question 228

Multiple Choice

When a bank receives deposits,

• A)it must hold the entire amount as reserves in case of withdrawal.
• B)the Fed requires it to hold only a small percentage as reserves.
• C)it and it alone decides how much it will hold as reserves.
• D)its liabilities increase in amount but its assets do not change.
• E)its assets increase in amount but its liabilities do not change.

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Definitions:

Internal Forces

Dynamics within an organization or system that drive changes or influence its operations without external intervention.

External Locus

Refers to the belief that one's success or failure is due to external forces beyond one's control.

High Self-monitor

An individual who is highly attentive to societal cues and adapts their behavior accordingly to fit in different social situations.

Organizational Financial Performance

Measures how well a company utilizes its assets to generate earnings and manage its financial activities.