Whenever a Bank's Actual Reserves Exceed Its Desired Reserves, the Bank

question 198

Multiple Choice

Whenever a bank's actual reserves exceed its desired reserves, the bank

• A) can lend out additional funds.
• B) needs to call in loans.
• C) will go out of business.
• D) must increase the amount of its required reserves by obtaining more cash.

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Definitions:

Oxygenated Blood

Blood that is rich in oxygen, typically found in the arterial system, except for the pulmonary arteries, which carry deoxygenated blood to the lungs.

Arteries

Blood vessels that carry oxygen-rich blood away from the heart to all parts of the body.

Oxygenated Blood

Blood that has been enriched with oxygen in the lungs and is transported via arteries from the heart to supply the tissues of the body.

Arterioles

Small branches of arteries that lead to capillaries, playing a crucial role in regulating blood pressure and flow.