Three-Year-Old Steven Walks Up to His Father, Who Is Reading

question 59

Multiple Choice

Three-year-old Steven walks up to his father, who is reading the newspaper, and says "Look at this picture, Daddy!" If his father does not respond, Steven is likely to

• A) repeat his remark to try again to get a response.
• B) keep talking about his picture as if his father had answered.
• C) walk away.
• D) think his comment does not deserve a response.

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Definitions:

Excess Reserves

The capital reserves held by a bank or financial institution in excess of what is required by regulators, laws, or internal controls.

Discount Rate

The interest rate charged to commercial banks and other depository institutions for loans received from the Federal Reserve's discount window.

Minting Coins

The process of manufacturing coins as a form of currency, typically by a government or authorized agency.

Interest Payments

Cash outflows from borrowers to lenders as compensation for the use of borrowed money.