In Situations Where the Required Reserve Shortfall Exceeds 4 Percent

Multiple Choice

In situations where the required reserve shortfall exceeds 4 percent, the bank may be

A) assessed explicit monetary penalties by the Federal Reserve Bank.
B) assessed implicit penalties in the form of more frequent monitoring and examinations.
C) allowed to carry 4 percent of the required reserves to the next maintenance period.
D) declared insolvent.
E) assessed explicit monetary penalties by the Federal Reserve Bank and implicit penalties in the form of more frequent monitoring and examinations and allowed to carry 4 percent of the required reserves to the next maintenance period.