A Bank's Reserves Are

question 91

Multiple Choice

A bank's reserves are

• A) the minimum value of assets it must have.
• B) the amount of gold it is required to have as reserves against loans.
• C) the value of federal securities it is required to have as reserves against loans.
• D) deposits that banks have accepted from customers but have not loaned out.

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Definitions:

Share Interest

The percentage of ownership an individual or entity holds in a company, measured through the proportion of shares owned.

Indebtedness

The state of owing money or being under financial obligation to another party.

Specific Assets

Assets clearly identified and defined, often mentioned in legal and financial documents, distinguishing them from general or unspecified assets.

Preferred Share

A type of stock that gives holders priority for dividend payments and assets in the event of a company's liquidation but typically does not have voting rights.