Cess Reserves Refer to the

question 156

Multiple Choice

cess 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:

Amortized

The gradual reduction of a debt over a period of time by making regular payments of interest and principal.

31st Payment

The payment made as the thirty-first installment in a series of payments or financial obligations.

Amortized

The process of spreading out a loan into a series of fixed payments over time, which covers both the principal and the interest.

Compounded Monthly

Interest calculation strategy where interest is added to the principal sum every month, allowing the investment to grow at a faster pace.