Whenever a Bank's Actual Reserves Exceed Its Desired Reserves, the Bank

question 198

Multiple Choice

Whenever a bank's actual reserves exceed its desired reserves, the bank

• A) can lend out additional funds.
• B) needs to call in loans.
• C) will go out of business.
• D) must increase the amount of its required reserves by obtaining more cash.

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Definitions:

Lecithin

A fatty substance found in plant and animal tissues, used as an emulsifier in food production and as a supplement.

Sodium Stearate

A sodium salt of stearic acid, often used as a surfactant in soaps and as a thickening agent.

Calcium Ions

Positively charged calcium atoms (\(Ca^{2+}\)) that play crucial roles in biological processes, including muscle contraction, neurotransmitter release, and bone formation.

Lipid Bilayer

A fundamental structure in cell membranes composed of two layers of lipid molecules, crucial for cellular integrity and function.