Primary Reserves

question 116

Multiple Choice

Primary reserves

• A) include the cash assets of the firm under the heading "cash and balances due from depository institutions.
• B) are short term securities held by banks that are quickly converted into cash at little cost to the banks.
• C) reflects the bank's ability to meet depositor withdrawals.
• D) reflects the bank's ability to keep the value of a bank's assets greater than its liabilities.