Banks are required to keep a minimum level of reserves on hand. The intent of this regulation is
A. monetary control rather than bank safety.
B. bank safety in case of bank runs.
C. maintenance of bank profits.
D. limiting the level of bank profits.
Answer: A
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When the value of U.S. merchandise exports is less than the value of U.S. merchandise imports,
a. the exchange rate, other currencies per dollar, appreciates b. the value of the dollar must fall c. there will be an increase in the demand for dollars d. an unfavorable balance of trade results e. foreign currency reserves must fall
One explanation given in the video for the fluctuations of an economy's real growth rate around its potential growth rate is:
A. that there are often shocks to the planned level of spending. B. that there are often shocks to the money supply. C. that the potential growth is inaccurately calculated. D. that there are often shocks to the key growth factors
The formation of the European Monetary Union:
A. reduced exchange rate instability but made it harder for members to manage their own economies. B. increased exchange rate instability and made it harder for members to manage their own economies. C. reduced exchange rate instability and made it easier for members to manage their own economies. D. increased exchange rate instability but made it easier for members to manage their own economies.
Which of the following is a market transaction?
A. A stock increases in value over the 30 years that it is owned. B. A radio station changes its programming from classical to rock. C. Weather destroys a farmer's crops, leaving the farmer unable to buy groceries. D. A college student purchases a laptop computer.