Excess Reserves Are Reserves That Banks Keep

question 16

Multiple Choice

Excess reserves are reserves that banks keep:

• A) in their vaults.
• B) at the central bank.
• C) to meet legal reserve requirements.
• D) above the legally required amount.

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Definitions:

Activate

To make active, enable, or start a process or function.

Credit Card

A payment card issued to users as a method of payment allowing the cardholder to pay for goods and services based on the holder's promise to pay for them.

Negative Words

Terms that convey a negative connotation, often used to express criticism, pessimism, or absence.

Maintain Accuracy

The act of ensuring information remains correct, precise, and free from errors.