If a Bank Has Zero Excess Reserves and One of Its

question 149

Multiple Choice

If a bank has zero excess reserves and one of its creditworthy customers applies for a loan,the bank may be able to grant the loan if it can

• A) apply some of its loan repayments to obtain the funds for the new loan.
• B) obtain extra funds in the federal funds market.
• C) obtain extra funds by borrowing from the Fed.
• D) any of the above
• E) b or c

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Definitions:

Environmental Risk

Potential harm or danger to the natural environment due to human activities or natural processes.

Poor People

Individuals or groups who lack the financial resources to meet a standard of living considered comfortable or normal in their society.

Urban Dwellers

Individuals who reside within the confines of a city or metropolitan area.

Environmental Racism

Discrimination in environmental policy-making and the enforcement of regulations and laws that disproportionately affects minority communities.