Banks That Need Additional Funds to Meet the Reserve Requirements

question 96

Multiple Choice

Banks that need additional funds to meet the reserve requirements of the Federal Reserve:

• A)borrow from the state government of the state where their headquarters are located.
• B)borrow from banks with excess reserves.
• C)issue treasury bills to investors.
• D)decrease the coupon interest rate on the bonds issued to raise funds.
• E)exercise the call option on the loans extended to small businesses.

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Definitions:

Concrete Operations

A stage in Piaget's theory of cognitive development where children begin to think logically about concrete events.

Preoperational

A stage in Piaget's theory of cognitive development where children from about 2 to 7 years think symbolically but are not yet logical.

Piaget

Jean Piaget was a Swiss psychologist known for his pioneering work in child development, particularly his theory of cognitive development that describes how children construct a mental model of the world.

Formal Operations

The stage in Piaget's theory of cognitive development where individuals are able to think abstractly and reason logically.