Whenever a bank's actual reserves exceed its desired reserves, the bank
A) can lend out additional funds.
B) needs to call in loans.
C) will go out of business.
D) must increase the amount of its required reserves by obtaining more cash.
A
Economics
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If an average cost pricing rule is imposed on the firm in the figure above, the deadweight loss will be
A) zero. B) $150. C) $50. D) $250.
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The Fed's lender-of-last-resort function
A) has proven to be ineffective. B) cannot prevent runs by large depositors. C) is no longer necessary due to FDIC insurance. D) creates a moral hazard problem.
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