Banks Are Required to Keep a Minimum Amount of Funds

question 60

Multiple Choice

Banks are required to keep a minimum amount of funds in reserve because

• A)Depositors may decide to withdraw funds at any time.
• B)The Fed may decide to withdraw funds at any time.
• C)The bank may decide to increase aggregate demand at any time.
• D)Borrowers may decide to repay loans ahead of schedule.

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Definitions:

Qualitative

Pertaining to or involving the assessment of data or phenomena through non-numerical and often descriptive methods.

Naturalistic Observation

A research method in which subjects are observed in their natural environment without any manipulation or intervention by the observer.

Objectivity

Objectivity in research or reporting refers to the avoidance of bias, ensuring that conclusions drawn are based solely on factual evidence and observable phenomena.

Scientific Observation

The process of gathering data through the senses or with the help of scientific instruments as part of the empirical research.