Buffer Reserves at DIs Are

question 63

Multiple Choice

Buffer reserves at DIs are

• A)reserves in excess of the minimum required reserves.
• B)government securities that do not qualify as required reserves,but that can be converted to cash quickly.
• C)the portion of reserves that are calculated at a rate of ten percent of deposits.
• D)non-government securities and loans that must be converted into cash.

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Definitions:

Psychological

Relating to the mind or mental processes and how they influence behavior, emotions, and cognition.

Stressor

Any event or situation that causes stress, forcing an individual to adapt or react to mitigate the source of stress.

Stress Response

The body's reaction to any change that requires an adjustment or response, which can involve physical, mental, or emotional strain or tension.

Stress Disorder

A mental health condition triggered by experiencing or witnessing a highly traumatic event, characterized by persistent distress and anxiety.