A Central Bank Holds Foreign Exchange Reserves For

question 4

Multiple Choice

A central bank holds foreign exchange reserves for:

• A) diversification purposes.
• B) foreign exchange interventions.
• C) safekeeping.
• D) diversification and safekeeping.

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Definitions:

Bank Statement

A document provided by a bank that summarizes an account's transactions and balances over a specific period.

Check Register

A record kept by an account holder of checks written, deposits made, and the current balance of the checking account.

Outstanding Deposit

Outstanding deposits are amounts of money that have been deposited in a bank account but not yet cleared or credited to the available balance.

Check Register

A record book or digital log used to track checks written, deposits made, and current balance in a checking account.