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

question 78

Multiple Choice

In order to meet a deficiency of excess reserves,a bank could

• A)buy securities
• B)deposit vault cash with the Fed
• C)turn some of its deposit 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:

Panic Disorder

A psychiatric disorder characterized by recurrent, unexpected panic attacks along with persistent concern about having further attacks, worry about the implications of the attacks, or a significant change in behavior related to the attacks.

Heart Palpitations

A sensation that the heart is racing, pounding, fluttering, or skipping beats, often benign but can be a sign of heart problems.

Hot and Cold Flashes

Sudden and intense feelings of heat or cold, often associated with hormonal changes, stress, or certain health conditions.

Sweating

The process of excreting fluid from the sweat glands of the skin as a means of regulating body temperature and expelling toxins.