Secondary Reserves Are So Called Because

question 49

Multiple Choice

Secondary reserves are so called because

• A)they can be converted into cash with low transactions costs.
• B)they are not easily converted into cash,and are,therefore,of secondary importance to banking firms.
• C)50% of these assets count toward meeting required reserves.
• D)they rank second to bank vault cash in importance of bank holdings.

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Definitions:

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Oceanic Plateau

Large submarine elevations lying above the abyssal plains of the ocean, created by volcanic activity or large-scale uplift.

Basalt

A dark, fine-grained volcanic rock that forms from the rapid cooling of basaltic lava, composing much of the ocean floor and volcanic islands.

Problem Solving

The process of identifying a problem, developing potential solutions, and implementing a course of action to resolve the problem.