Excess Reserves Are Important to a Banker Because

question 64

Multiple Choice

Excess reserves are important to a banker because

• A)if they are not maintained,banking regulators may shut the bank down.
• B)they are the profits that are divided among the bank's owners.
• C)they represent the funds available to use to acquire income-producing assets such as loans and securities.
• D)they indicate profitable banking practices.
• E)they are typically deposited in special high-yielding investment accounts.

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