One Factor That Decreases the Volume of Bank Reserves Is

question 61

Multiple Choice

One factor that decreases the volume of bank reserves is a decrease in

• A) bank holdings of loans and securities.
• B) time and savings deposits.
• C) life insurance company reserves.
• D) Federal Reserve float.

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Definitions:

Economic Values

The worth of goods or services determined by their utility and scarcity in relation to consumer demand.

Annuities

Financial products that pay out a fixed stream of payments to an individual, typically used as part of retirement planning.

Compounded Semi-Annually

An interest calculation method where interest is added to the principal sum of a deposit or loan at mid-year and end-of-year, resulting in interest earning interest.

Guaranteed Contract

An agreement ensuring certain terms are fulfilled, often used in the context of employment contracts guaranteeing payment.