18-86 One Method That May Be Employed by Banks to Lower

question 73

Multiple Choice

18-86 One method that may be employed by banks to lower required reserves is to

• A)transfer deposits offshore on Friday and to transfer them back on Monday.
• B)convert demand deposits into MMDA accounts on Friday and reverse the transfer the following Monday.
• C)rely more heavily on zero explicit interest-rate deposits.
• D)delay posting deposits made on Friday until the following Monday.
• E)do nothing,because reserve requirements cannot be avoided.

---

Definitions:

Stimulant Medications

Drugs that increase activity in the brain and nervous system, often used to treat attention deficit hyperactivity disorder (ADHD) and narcolepsy.

ADHD

Attention Deficit Hyperactivity Disorder is a brain-based, developmental disorder marked by distractibility, excessive energy, and impulsive actions.

Cognitive Behavioral Therapies

A variety of psychotherapeutic approaches that aim to solve problems by changing dysfunctional emotions, behaviors, and thoughts.

ADHD

Attention Deficit Hyperactivity Disorder, a neurodevelopmental disorder characterized by patterns of behavior that include inattention, hyperactivity, and impulsivity.