Primary Reserves

question 116

Multiple Choice

Primary reserves

• A) include the cash assets of the firm under the heading "cash and balances due from depository institutions.
• B) are short term securities held by banks that are quickly converted into cash at little cost to the banks.
• C) reflects the bank's ability to meet depositor withdrawals.
• D) reflects the bank's ability to keep the value of a bank's assets greater than its liabilities.

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Definitions:

Corpus Callosum

A broad band of nerve fibers joining the two hemispheres of the brain, facilitating interhemispheric communication.

Frontal Lobes

The areas of the brain located behind the forehead that are responsible for complex cognitive functions, including emotional regulation, problem solving, and planning.

Motor Cortex

The area of the brain responsible for the planning, control, and execution of voluntary movements.

Postcentral Gyrus

The region in the parietal lobe of the brain where the primary somatosensory cortex is located, responsible for processing tactile information.