18-74 Requiring Minimum Reserves to Be Held at the Central

question 3

Multiple Choice

18-74 Requiring minimum reserves to be held at the central bank is the equivalent of

• A)buffer reserves.
• B)a reserve requirement tax.
• C)the target reserve ratio.
• D)contagious effects of liquidity risk.
• E)None of the above.

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Definitions:

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time.