One Reason Why Banks Might Increase Their Reserve-Deposit Ratio Above

question 16

Multiple Choice

One reason why banks might increase their reserve-deposit ratio above the minimum level in times of economic uncertainty is that banks:

• A)are initiating quantitative easing.
• B)may have insufficient required reserves.
• C)are most profitable when new loans are issued.
• D)may find only limited lending opportunities that seem sufficiently safe.

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Definitions:

Knowledge Repositories

Centralized databases or systems where an organization’s collective knowledge is stored, managed, and shared among stakeholders.

E-HR Functions

The use of digital technologies to manage and deliver human resource services, such as recruitment, training, and performance management.

Service Delivery Model

A framework that defines how services are delivered to customers or clients, including the processes, roles, and responsibilities involved.

Information Technology (IT)

The hardware and software, including networking and communication technologies involved in storing, retrieving, and transmitting information.