Multiple Choice
Banks hold excess and secondary reserves to
A) reduce the interest-rate risk problem.
B) provide for unexpected deposit outflows.
C) satisfy margin requirements.
D) achieve higher earnings than they can with loans.
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q4: Banks hold capital because<br>A)they are required to
Q5: A bank with insufficient reserves can increase
Q6: Examples of off-balance-sheet activities include<br>A)trading activities.<br>B)extending loans
Q7: Banks may borrow from or lend to
Q8: A deposit outflow results in equal reductions
Q10: A $5 million deposit outflow from a
Q11: Traders working for banks are subject to
Q12: In general,banks make profits by selling _
Q13: How can specializing in lending help to
Q14: When $1 million is deposited at a