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:

Nephron

The functional unit of the kidney, responsible for filtering blood and producing urine.

Microvilli

microscopic cellular membrane protrusions that increase the surface area for absorption, especially in the epithelial cells of the intestines.

Proximal Convoluted Tubule

The portion of the nephron in the kidney involved in the reabsorption of water, ions, and nutrients from the filtrate.

Active Transport

The movement of substances across a cell membrane against their concentration gradient, requiring energy in the form of ATP.