When Is a Particular Bank in a Position to Make

question 84

Multiple Choice

When is a particular bank in a position to make new loans?

• A)When required reserves equal actual reserves.
• B)When required reserves exceed actual reserves.
• C)When required reserves are less than actual reserves.
• D)When required reserves equal excess reserves.

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Definitions:

Oral Stage

The first stage in Freudian psychosexual development, occurring from birth to about 18 months, where the mouth is the focal point of libidinal energy.

Assimilation

The incorporation of new events or knowledge into existing schemes.

Accommodation

The modification of existing schemes to permit the incorporation of new events or knowledge.

Scheme

An action pattern or mental structure that is involved in the acquisition and organization of knowledge.