Which of the Following Is Not a Reason for Banks

question 41

Multiple Choice

Which of the following is not a reason for banks to hold liquid assets?

• A)To meet customers' needs for currency
• B)To meet capital requirements
• C)To meet required reserves
• D)To compensate for correspondent bank services
• E)To assist in the check clearing process

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Definitions:

Economic Policy

Decisions and actions taken by governments and central banks to influence their country's economic performance, focusing on objectives like growth, employment, and price stability.

Flawed Theory

A concept or idea that contains mistakes or inaccuracies, making it unreliable or incorrect in its application or conclusion.

Desired Outcome

The specific result or goal that an individual or organization aims to achieve through actions or interventions.

High Unemployment

A situation in an economy where the unemployment rate is significantly higher than the historical average.