Statement I: If a Bank Has Negative Excess Reserves,then Its

question 77

Multiple Choice

Statement I: If a bank has negative excess reserves,then its required reserves are greater than its actual reserves.
Statement II: If a bank has negative excess reserves,it generally eliminates them by borrowing money in the Federal Funds market.

• A)Statement I is true and statement II is false.
• B)Statement II is true and statement I is false.
• C)Both statements are true.
• D)Both statements are false.

---

Definitions:

Bilirubin

A yellow compound that occurs in the normal catabolic pathway that breaks down heme in vertebrates. Its levels are measured to assess liver function.

Bacterial Endocarditis

An infection of the inner lining of the heart chambers and valves, typically caused by bacteria.

Hemorrhages

Excessive bleeding that occurs inside or outside the body, potentially life-threatening if not managed promptly.

Nailbed

The skin beneath the nail plate that is responsible for supporting nail growth.