Which of the Following Is Not an Advantage of Larger

question 11

Multiple Choice

Which of the following is not an advantage of larger cash balances for a bank?

• A) Larger cash balances reduce the need to borrow at the discount window.
• B) Larger cash balances reduce the risk of bank runs.
• C) Larger cash balances reduce the risk of paying penalties to the Federal Reserve.
• D) Larger cash balances increase reserve balances.
• E) Larger cash balances reduce a bank's interest expense.

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Definitions:

Collective Action

Efforts by groups to resist and change the status quo in the service of group goals.

Individual Mobility

The ability of an individual to move within or between social strata in a society.

Group Distancing

The process by which individuals or groups distance themselves from other groups, especially those considered to be of lower status or incompatible.

Self-Esteem

Self-esteem is the subjective evaluation of one's own worth, including feelings of confidence, competence, and self-respect.