The Minimum Liquidity Requirement Is The

question 30

Multiple Choice

The minimum liquidity requirement is the:

• A)actual amount of reserves that banks must hold.
• B)excess amount of reserves that a bank must hold.
• C)minimum amount of reserves the RBA requires a bank to hold.
• D)total amount of reserves that banks hold at all times.
• E)maximum amount of reserves that banks can hold to remain liquid.

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Definitions:

Maturity Date

The specified date on which the final payment of a loan, bond, or other financial instrument is due to be paid.

Issue Date

The date on which a financial instrument or document, such as a bond or a check, is issued and becomes effective.

National Credit Cards

Credit cards that are accepted within a specific country, which might not be valid for international transactions.

Credit Card Companies

Businesses that issue credit cards and facilitate credit transactions between consumers and merchants.