Which of the Following Compose the Reserves of a Commercial

question 150

Multiple Choice

Which of the following compose the reserves of a commercial bank?

• A) demand deposits and time deposits
• B) vault cash and deposits of the bank with the Federal Reserve
• C) U.S. securities and stock equity
• D) cash and U.S. securities

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Definitions:

NASDAQ

A global electronic marketplace for buying and selling securities, as well as the benchmark index for U.S. technology stocks.

Over-The-Counter Market

A decentralized market where securities not listed on major stock exchanges are traded directly between parties.

Dealers

Individuals or firms in the financial markets that act as principals in trading, buying, and selling securities for their own account.

Third Market

Trading venue for exchange-listed stocks that occurs off the official exchange, often involving large institutional investors through over-the-counter (OTC) transactions.