If a Bank Has Negative Excess Reserves

question 102

Multiple Choice

If a bank has negative excess reserves,

• A)it is bankrupt.
• B)its required reserves are greater than its actual reserves.
• C)it must stop making loans.
• D)it must raise the interest rates it is charging borrowers.

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Definitions:

Output Energize

Relates to activating an output module in a control system, thereby supplying power or signal to the connected load or device.

Input Energize

Involves the process of providing electrical or signal power to a system's input to activate or trigger a response.

Module Address

The specific location or identifier assigned to a module within a system, such as a PLC, which allows it to be accessed and communicated with.