Secondary or Buffer Reserves Are

question 45

Multiple Choice

Secondary or buffer reserves are:

• A)non-reserve assets that can be quickly turned into cash or used to provide collateral for repurchase agreements and other bank borrowing
• B)illiquid securities
• C)used to pay dividends
• D)All of the listed options are correct.

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Definitions:

Incremental Value

The additional value created or achieved as a direct result of a specific action, decision, or investment.

Cash

A form of liquid asset that includes physical currency such as banknotes and coins, and demand deposits that can be quickly converted into physical cash.

Incremental Value

The additional or extra value generated by undertaking a new project, making an investment, or initiating a new action.

Equity-Financed

A method of raising capital through the sale of shares in the company, leading to shareholder ownership.