Which of the Following Assets Can a Commercial Bank Count

question 89

Multiple Choice

Which of the following assets can a commercial bank count as reserves?

• A) its holdings of U.S. Treasury bills
• B) its vault cash and deposits with the Fed
• C) its outstanding loans
• D) the savings accounts of its depositors

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Definitions:

Punitive Damages

Monetary compensation awarded to a plaintiff that goes beyond what is necessary to compensate for losses, intended to punish the defendant for particularly egregious behavior.

Deter

To discourage or prevent from acting, typically through the threat of negative consequences.

Shoes

Footwear items designed to protect and comfort the human foot while also providing fashion and style.

Damages

Compensation or monetary awards given to a party in a lawsuit for losses or injuries suffered as a result of another party's actions or negligence.