Bank Failure Is Less Likely to Occur When a Bank

question 103

Multiple Choice

Bank failure is less likely to occur when a bank

• A) holds less in U.S. government securities.
• B) suffers large deposit outflows.
• C) holds more excess reserves.
• D) has less bank capital.

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Definitions:

Extensor Carpi Radialis

A muscle of the forearm that extends and abducts the wrist.

Biceps Brachii

A large muscle in the upper arm responsible for forearm rotation and flexion of the elbow.

Flexor of Forelimb

Muscles responsible for bending joints and allowing the forelimb to flex.

Pectoralis Group

A collection of muscles in the chest that include the pectoralis major and pectoralis minor, critical for the movement of the shoulder and arm.