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.
Correct Answer:

Verified
Correct Answer:
Verified
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