Use the Information for the Question(s)below

question 101

Multiple Choice

Use the information for the question(s) below.
-Which of the following best describes a bond rated by Standard and Poor's and Moody as B?

• A)judged to be high quality by all standards
• B)possessing many favorable characteristics
• C)neither highly protected nor poorly secured
• D)generally lacks the characteristics of a desirable investment

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Definitions:

Reserve Requirement

The minimum amount of reserves that a bank must hold against its deposits, as mandated by central banking authorities to ensure liquidity.

Discount Rate

The rate of interest applied to loans given to commercial banks and other financial institutions by their local Federal Reserve Bank's credit facility.

Reserves

refers to funds or materials set aside or saved for future use or emergencies, often in the context of banking or natural resources.

Checkable Deposits

Bank account balances that can be accessed using checks, debit cards, or electronic means to make payments directly.