Which of the Following Would Be Considered a Secondary Reserve

question 41

Multiple Choice

Which of the following would be considered a secondary reserve for a bank?

• A)cash the bank has on hand
• B)securities the bank has purchased from the federal government
• C) deposits that may be due from other banks
• D) the reserve percentage required by the Federal Reserve System

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Definitions:

Merchandise Inventory

Goods that a retail merchandising business holds for sale to customers.

Periodic Inventory System

An inventory system that records inventory purchase or sales at the end of a period rather than after each transaction.

Cost of Goods Sold

The direct costs attributable to the production of goods sold by a company, including materials and labor costs.

Merchandise Inventory

The goods a company has in stock that are ready to be sold, representing one of the primary sources of revenue for retail and wholesale businesses.