Buffer Reserves at DIs Are

question 21

Multiple Choice

Buffer reserves at DIs are

• A)reserves in excess of the minimum required reserves.
• B)government securities that do not qualify as required reserves, but that can be converted to cash quickly.
• C)the portion of reserves that are calculated at a rate of ten percent of deposits.
• D)non-government securities and loans that must be converted into cash.
• E)the portion of life insurance company assets that require minimum reserves.

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