Table 21-4. -Refer to Table 21-4.If the Bank Faces a Reserve Requirement

question 81

Multiple Choice

Table 21-4.

-Refer to Table 21-4.If the bank faces a reserve requirement of 10 percent,then the bank

• A) is in a position to make a new loan of $15,000.
• B) has fewer reserves than are required.
• C) has excess reserves of $10,000.
• D) None of the above is correct.

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Definitions:

Unfairly

In a manner that is not based on justice or equality; biased or prejudiced treatment.

Self-fulfilling Prophecy

A prediction that causes itself to become true due to the behavior it generates in believers.

Discriminatory Manner

Acting in a way that makes an unfair distinction in treating people, especially on the grounds of race, age, or sex.

Prejudicial Remarks

Statements or comments that are unfair or biased, often based on stereotypes, leading to the discrimination of individuals or groups.