Which of the Following Would Be a Consequence of a Bank

question 1

Multiple Choice

Which of the following would be a consequence of a bank choosing not lend its excess reserves:

• A) A decrease in the bank's required reserves
• B) An increase in the bank's total reserves
• C) An increase in the bank's reserve-deposit ratio
• D) Increased risk-taking by the bank.

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Definitions:

Organizational Change

The process through which a company or organization goes through transformation or adaptation in its structures, strategies, or processes.

Emergency Aid

Assistance provided in response to a crisis or disaster to meet the immediate needs of affected individuals or communities.

Reducing Workload

Actions taken to decrease the amount of work assigned to an individual or team, often for improving efficiency or well-being.

Physical Retreat

Physical retreat means withdrawing to a safe or quiet place to escape from stressful or demanding situations.