A Bank's Secondary Reserves Include Its

question 65

Multiple Choice

A bank's secondary reserves include its

• A)holdings of long-term bonds issued by large corporations.
• B)passbook saving account balances (a liability to the bank).
• C)holdings of corporate stock.
• D)holdings of 6-month Treasury bills.

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Definitions:

Equity Income

Refers to the income generated by an investor's share of profits from an equity investment, such as stocks or ownership interests in companies.

Fair Value

The obtainable price for liquidating an asset or the charge to shift a liability in a planned engagement with market operatives at the time of determining value.

Investment Account Balance

The total value of all the investments held in an investor's account, including stocks, bonds, mutual funds, and other assets.