To Minimize the Cost of Holding Reserves for Small Banks

question 5

Multiple Choice

To minimize the cost of holding reserves for small banks, the:

• A)required reserve rate decreases as the amount of deposits increases.
• B)required reserve rate is constant.
• C)required reserve rate is not applied for transaction deposits less than $100 million.
• D)first few million of transactions deposits are exempt from reserve requirements.

---

Definitions:

Aggressive Behavior

Actions or behaviors that are hostile, destructive, or violent towards others or oneself.

Braille

A tactile writing system used by people who are visually impaired, consisting of raised dots that represent letters, numbers, and punctuation marks.

Occipital Lobe

Situated in the rear part of the brain, this segment of the cerebral cortex is in charge of interpreting visual inputs.

Anatomy

The branch of biology concerned with the study of the structure of organisms and their parts.