Bank reserves that exceed the reserve requirements set by the central bank are called:
A. required reserves.
B. excess reserves.
C. legal reserves.
D. total reserves.
Answer: B
You might also like to view...
Some economists believe that one factor that caused the financial crisis of 2007-2009 was top managers of large financial services firms making riskier investments than were in the best interests of the firms' shareholders
Indicate whether the statement is true or false
The experience of Chile's foreign sector in the last two decades of the 20th century supports the proposition that economic growth is supported by
A) import substitution. B) industrialization policies. C) trade liberalization policies. D) intra-industry trading. E) trade embargoes.
If bonds and stocks are considered to be substitute goods, and the investors expect stock prices to drop in the near future, _____
a. the price of bonds will also decline b. the supply of bonds will increase c. the interest rate on bonds will decline d. the demand for stocks will increase e. the demand for bonds will decline
In addition to other factors, the increased use of technology and the reduced costs of information transfer from local office to corporate headquarters have
A. reduced the need for middle managers and increased the scope of local decision-making authority. B. only increased the costs of decentralization. C. shown that technology has little impact on the centralization issue. D. significantly increased the need for centralized decision making.