The Minimum Amount of Reserves a Bank Is Required to Hold

question 37

Multiple Choice

The minimum amount of reserves a bank is required to hold is

• A)Required reserves.
• B)Excess reserves.
• C)Total reserves.
• D)Legal reserves.

---

Definitions:

Excess Amortization

The portion of amortization expenses that exceeds the cash or profit generated by the asset being amortized, typically relevant in high depreciation contexts.

Significant Influence

The power to participate in the financial and operating policy decisions of another entity, without having control over those policies.

Investment Account

A type of account held at a financial institution that holds securities, cash, and other assets in the name of the investor.