Multiple Choice
Requiring minimum reserves to be held at the central bank is the equivalent of
A) buffer reserves.
B) a reserve requirement tax.
C) the target reserve ratio.
D) contagious effects of liquidity risk.
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q17: One method of reducing the risk of
Q23: Because of penalties imposed for early withdrawal,
Q24: The increased securitization of bank loans has
Q34: In the U.S., banks can hold cash
Q35: The Federal Reserve allows the DI to
Q40: The following demand deposits and cash reserves
Q41: A NOW account requires a minimum monthly
Q71: Passbook savings accounts normally receive a lower
Q90: A strategy to increase reservable deposits on
Q131: Fed funds are subject to settlement risk,