Table 29-8 -Refer to Table 29-8. the Required Reserve Ratio Is 12

question 337

Multiple Choice

Table 29-8
-Refer to Table 29-8. The required reserve ratio is 12 percent and First National Bank sells $120 of its short-term securities to the Federal Reserve. This action will

• A)increase First National's reserves by $120. Its excess reserves are $240.
• B)decrease First National's reserves by $120. Its excess reserves are $0.
• C)increase First National's loans by $120. Its reserves decrease by $120.
• D)decrease First National's loans by $120. Its reserves increase by $120.

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Definitions:

Self-efficacy

A person's confidence in their ability to carry out actions that are required to achieve particular outcomes.

Verbal Persuasion

A method of influence involving the use of language to convince or persuade others to change their thoughts, beliefs, or actions.

Activity Failure

A situation where an attempt to perform an action does not result in the expected goal or outcome, often leading to learning or modification of efforts.

Adults

Individuals who have reached the age where they are considered legally responsible for their actions and have attained full physical development.