If a Bank Does Not Have Enough Reserves to Satisfy

question 72

Multiple Choice

If a bank does not have enough reserves to satisfy the reserve requirement,it is likely to do any of the following except

• A)Borrow additional reserves in the federal funds market.
• B)Sell securities.
• C)Borrow from the discount window at the Federal Reserve Bank.
• D)Buy securities.

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Definitions:

Criterion-Related Validity

A measure of the degree to which a test or instrument reflects a certain set of abilities applicable to the real world.

Criterion Performance

A specific standard or benchmark that individuals must meet or exceed in a performance context, often used in assessments or evaluations.

Reliability Estimate

A statistical measure that indicates the consistency of an assessment tool or measurement over time.

Test Administrator

A person responsible for overseeing the administration of a test, ensuring the guidelines and procedures are followed.