The Kind of Assets Banks Can Hold as Reserves Are

question 36

Multiple Choice

The kind of assets banks can hold as reserves are also called the economy's

• A)checkable deposits.
• B)money market funds.
• C)high-powered money.
• D)bankers' acceptances.

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Definitions:

Debit Cards

Plastic payment cards that allow users to make transactions by deducting money directly from their checking account, rather than incurring debt like a credit card.

Money

A medium of exchange that is widely accepted in transactions for goods and services, acting as a unit of account, a store of value, and sometimes, a standard of deferred payment.

Precious Metals

Rare, naturally occurring metallic elements of high economic value, which are often used as investment commodities, jewelry, and in industrial applications.

Paper Dollar

A term referring to United States currency notes made of paper, as opposed to coins or digital currency.