Excess Reserves Refer to the

question 163

Multiple Choice

Excess reserves refer to the

• A)difference between a bank's vault cash and its reserves deposited at the Federal Reserve Bank.
• B)minimum amount of actual reserves a bank must keep on hand to back up its customers deposits.
• C)difference between actual reserves and loans.
• D)difference between actual reserves and required reserves.

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Definitions:

Leverage Ratios

Financial metrics that assess the level of debt in a company's capital structure relative to its equity or assets.

Dividend Policy

A company's approach to distributing profits back to its shareholders, whether through cash dividends, stock dividends, or share repurchase plans.

Sales Forecasts

Sales Forecasts predict the amount of product or service a company expects to sell over a specific period, aiding in planning and budgeting.

Financial Planning

The method of calculating the essential capital and identifying its competition involves forming financial strategies concerning the acquisition, investment, and management of an enterprise's capital.