Which Two of the Following Require Liquidity but Do Not

question 77

Multiple Choice

Which two of the following require liquidity but do not necessarily require cash reserves?

• A) Transaction and precautionary motives
• B) Compensating balance requirement and precautionary motive
• C) Compensating balance requirement and transaction motive
• D) Speculative and transaction motives
• E) Precautionary and speculative motives

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Definitions:

Action Potentials

Electrical impulses that neurons generate to transmit information through the neuron's axon to another neuron or to a muscle or gland cell.

Synapses

The junctions between two neurons, where the transfer of electrical or chemical signals occurs.

Interneurons

Neurons that transmit impulses between other neurons, especially as part of reflex arcs and neural networks within the central nervous system.

Peripheral Nervous System

The part of the nervous system outside the brain and spinal cord, including the nerves and ganglia, responsible for transmitting information to and from the central nervous system.