Suppose There Is a Bank Panic

question 204

Multiple Choice

Suppose there is a bank panic.Which of the following would not be a consequence of this bank panic?

• A)Bank total reserves would decrease.
• B)Required reserves would increase.
• C)Bank checking account balances would decrease.
• D)Individual banks would have to shrink the value of loans they made.
• E)The economy would likely enter into a recession.

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Definitions:

Blast Furnaces

Large industrial furnaces used to extract iron from its ore by a process involving heat and the reduction of the ore at high temperatures.

LEED

Leadership in Energy and Environmental Design, a globally recognized green building certification system promoting environmental responsibility.

U.S. Green Building Council

An organization committed to promoting sustainable and environmentally friendly building practices, known for developing the LEED (Leadership in Energy and Environmental Design) certification program.

Analytic

Involving the use of logical reasoning, detailed examination, and systematic analysis to understand or solve problems.