In Order to Meet a Deficiency of Required Reserves,a Bank

question 110

Multiple Choice

In order to meet a deficiency of required reserves,a bank could:

• A)buy securities.
• B)deposit vault cash with the Fed.
• C)turn some of its deposits at the Fed into cash.
• D)close some checking accounts.
• E)borrow from another bank in the federal funds market.

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Definitions:

Complexity

The state of having multiple interconnected parts or elements, leading to a system or problem that is difficult to understand, predict, or navigate.

Tightness

In psychology, often refers to the strictness of social norms and the level of sanctioning within cultures or groups.

Toughness

The quality or state of being strong and resilient mentally or physically, often in the face of hardship or adversity.

Affiliation

The need or desire to build relationships or be part of a group.