Secondary Reserves Are So Called Because ________

question 125

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 percent of these assets count toward meeting desired reserves
• D) they rank second to bank vault cash in importance of bank holdings

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Definitions:

Statute of Frauds

A legal principle requiring certain contracts to be in writing to be legally enforceable, such as contracts for the sale of land.

Consideration

The value (such as money, service, or goods) that is promised by one party to another in exchange for performing or promising to perform an act.

Conditional Acceptance

An agreement to accept an offer based on specific conditions being met.

Equitable Estoppel

A legal doctrine preventing a party from denying or asserting anything to the contrary of what has been established as truth, due to previous actions, conduct, or statements.