Secondary Reserves Are So Called Because

question 49

Multiple Choice

Secondary reserves are so called because

• A)they can be converted into cash with low transactions costs.
• B)they are not easily converted into cash,and are,therefore,of secondary importance to banking firms.
• C)50% of these assets count toward meeting required reserves.
• D)they rank second to bank vault cash in importance of bank holdings.

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Definitions:

External Monitoring

The process of continuously scanning and analyzing an organization's external environment to identify trends, opportunities, and threats.

Delegating

The act of entrusting tasks or responsibilities to others, typically those who are subordinates or team members, to improve efficiency and develop their capabilities.

Democratic Leadership

A leadership style characterized by the sharing of decision-making responsibilities between the leader and members of the group, promoting participation and collaboration.

Decision-Making Procedures

Systematic approaches or steps taken to arrive at choices or solutions in a rational and informed manner.