The Minimum Amount of Reserves a Bank Must Hold with the Federal

question 335

Multiple Choice

The minimum amount of reserves a bank must hold with the Federal Reserve to back up its deposits is called a(n)

• A)excess reserve.
• B)time deposit.
• C)demand deposit.
• D)reserve requirement.

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Definitions:

Adversely Affected

Negatively impacted or harmed by a particular event, action, or decision.

Behavioural Disinhibition

A personality trait describing an inability to inhibit behavioural impulses, rebelliousness, aggressiveness, and risk-taking that are associated with the development of alcohol problems.

Personality Characteristic

Traits or qualities that contribute to an individual's distinctive patterns of thinking, feeling, and behaving.

Behavioural Tolerance

Through the principles of classical conditioning, cues in the environment can become conditioned stimuli to the effects of drug use. These cues cause the individual to anticipate the drug effects so that when the drug is actually administered the effects are diminished. Tolerance, or the need for a greater amount of drug for the same effect, is greatest when the conditioned environmental cues are present.