Any Reserves That Banks Hold in Excess of Required Reserves

question 172

Multiple Choice

Any reserves that banks hold in excess of required reserves are called

• A) excess reserves.
• B) margin reserves.
• C) federal reserves.
• D) surplus reserves.

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Definitions:

Opportunity Cost

The financial impact of rejecting the most viable alternative during a decision process.

Highest Valued Use

The use of a resource or good that provides the most benefit or value to its user.

Revenue Derived

Pertains to income generated from specific activities or products, indicating a direct source of a company's revenue.

House Painters

Professionals specializing in applying paint and other finishes to buildings primarily for protection and aesthetic purposes.