A Bank Finds Itself Short of Required Reserves and Therefore

question 60

Multiple Choice

A bank finds itself short of required reserves and therefore borrows from another commercial bank. The interest rate on this loan is

• A) zero.
• B) the prime rate.
• C) the discount rate.
• D) the federal funds rate.
• E) the required reserve ratio.

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Definitions:

Etruscan Cemetery

An ancient burial site associated with the Etruscans, a pre-Roman civilization in Italy, known for their richly decorated tombs and funerary art.

Cerveteri

An ancient Etruscan city in Italy, renowned for its necropolises with tombs carved into the rock and impressive burial mounds.

Tumulus

An ancient burial mound of earth and stones placed over a grave or graves.

Political Disconnectedness

A term describing a state or condition where individuals or communities feel disengaged or separated from political processes and institutions.