If a Bank Has Positive Excess Reserves

question 304

Multiple Choice

If a bank has positive excess reserves,

• A)its actual reserves are greater than its required reserves.
• B)its required reserves are greater than its excess reserves.
• C)it is bankrupt.
• D)it must stop making loans.

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Definitions:

Strange Situation

A procedure developed by Mary Ainsworth in the 1970s to observe attachment relationships between a caregiver and child by introducing a series of separations and reunions.

Interaction

A reciprocal action or influence between two or more entities, objects, or individuals.

Reunion

The act of coming together again after being separated, often referring to gatherings of family, friends, or colleagues.

Ambivalent/Resistant Attachment

A form of insecure attachment where children are overly dependent on caregivers and show difficulty in separating from them.