An Index Consists of the Following Securities

question 44

Multiple Choice

An index consists of the following securities.What is the value-weighted index return?

• A)3.72 percent
• B)5.09 percent
• C)6.61 percent
• D)8.75 percent
• E)10.07 percent

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Definitions:

Excess Reserves

Funds that banks hold over and above the legal requirements, which can influence their ability to lend.

Deposits

Funds placed into an account at a financial institution for safekeeping and to earn interest.

Excess Reserves

Excess reserves are the funds that banks hold over and above the required minimum reserves mandated by central banking regulations, often stored in central banks.

Treasury Bonds

Long-term government securities issued by the U.S. Department of the Treasury. They carry a fixed interest rate and have maturities ranging from 20 to 30 years.