If a Check Is Written for the Full Amount of a Derivative

question 48

Multiple Choice

If a check is written for the full amount of a derivative deposit created by a bank loan and then is sent to a bank in another city for deposit:

• A)the lending bank would lose all of its excess reserves
• B)the lending bank would still have reserves to lend
• C)the full amount would be added to the receiving bank's excess reserves
• D)both a and c

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Definitions:

Neo-Freudian

A term referring to psychologists who adopted and adapted Freud's theories, while also introducing new concepts and diverging from some of his ideas.

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Specialists who study aging and the various aspects affecting older adults, including the biological, psychological, and social changes.

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The feeling of being emotionally close to and connected with someone, often involving a sense of sharing and support.

Isolation

The experience of being separated from others, which can be physical, social, or emotional in nature.