A Bank That Does Not Want to Hold a Lot

question 77

Multiple Choice

A bank that does not want to hold a lot of excess reserves but wants to manage liquidity risk is likely to:

• A)Hold a lot in highly liquid securities
• B)Make sure that most of its assets are in small business loans
• C)Have a high ratio of loans to securities
• D)Limit withdrawals by customers

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Definitions:

Bargaining Unit(s)

A group of employees with common interests and concerns who are represented collectively in negotiations with their employer.

Clerical Employees

Workers who perform administrative and office functions, such as typing, filing, and managing records.

Groundskeepers

Individuals responsible for the maintenance and landscaping of outdoor environments, such as parks, gardens, or sports fields.

Union Instrumentality

The perceived effectiveness of labor unions in achieving desired outcomes for their members, such as better wages and working conditions.