For What Reason Do Banks Hold Reserves

question 22

Multiple Choice

For what reason do banks hold reserves?

• A)to meet safety objectives
• B)to meet liquidity objectives
• C)to meet Federal Reserve requirements
• D)All of the above are correct

---

Definitions:

Audience Needs

The interests, preferences, background knowledge, and objectives of the intended audience.

Completing Business Message

The final step in business communication, ensuring the message is clear, concise, and ready for delivery to the intended audience.

Writing Phase

The writing phase is a stage in the process of creating written content where ideas are developed and articulated into a coherent text.

Three-Step Writing Process

A structured approach to writing that includes planning, drafting, and revising to produce effective written communication.