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Banks Hold Some Deposits on Reserve at the Fed Because

Question 95

Multiple Choice

Banks hold some deposits on reserve at the Fed because


A) the Fed requires every bank to hold at least $100 million on deposit at all times.
B) the Fed will insure those deposits, but will not insure regular bank deposits.
C) these are membership dues for being a member bank.
D) these deposits meet the reserve requirements of the Fed.

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