Which of the Following Statements Is Correct About the Commercial

question 307

Multiple Choice

Which of the following statements is correct about the commercial banks' reserves kept as deposits at the Federal Reserve?

• A) Commercial banks don't have access to their reserves at the Fed.
• B) Commercial banks write checks to other banks on their reserve accounts at the Fed.
• C) Commercial banks can make loans to commercial customers out of these reserves.
• D) The reserves are the banks' only assets.

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