A Bank Is Reserve Deficient When

question 117

Multiple Choice

A bank is reserve deficient when

• A) its reserves fall short of the level determined by the required reserve ratio.
• B) its excess reserves are greater than its required reserves.
• C) its required reserves are greater than its excess reserves.
• D) it purchases government securities from the Fed.

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Definitions:

Joseph Schumpeter

An economist known for his theory on business cycles and for coining the term "creative destruction" to describe the process of innovation in economics.

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The process of translating an idea or invention into a good or service that creates value or for which customers will pay.

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Geographic concentrations of interconnected companies, specialized suppliers, and service providers in a particular field that are thought to increase competitiveness and innovation.

Old Navy

A popular clothing and accessories retailer known for offering fashionable and affordable apparel for the entire family.