Banks Normally Hold Few Excess Reserves Because This Practice Is

question 56

Multiple Choice

Banks normally hold few excess reserves because this practice is:

• A) subject to an excess reserves tax.
• B) not profitable.
• C) against Fed policy.
• D) illegal.

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Definitions:

Unstated Conclusion

A conclusion that is implied within an argument but is not explicitly expressed or detailed within the argument's text.

Earned

Acquired or received as a result of effort or achievement.

E Proposition

In logic, a type of categorical proposition that states no members of the subject category are part of the predicate category.

Distributed

In logic, refers to a term in a categorical proposition that is affirmed or denied of every member of the class it denotes.