If a Bank Does Not Have Enough Reserves,it Can

question 83

Multiple Choice

If a bank does not have enough reserves,it can:

• A) Buy bonds on the open market.
• B) Raise the interest rate it charges borrowers.
• C) Borrow reserves from the discount window.
• D) Make more loans.

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Definitions:

Expected Return

The anticipated amount of profit or loss an investment is likely to generate over a specific period.

Stock X

An online marketplace and clothing reseller, primarily of sneakers and streetwear.

Stock Y

A placeholder name for a specific stock not defined here; could be used to discuss hypothetical scenarios in finance.

Economy Booms

A period of significant economic growth, expansion, and high activity within a country's economy.