Which of the Following Is Part of a Bank's Reserves

question 54

Multiple Choice

Which of the following is part of a bank's reserves?

• A) Money in the bank's vaults
• B) Government bonds
• C) Loans
• D) Buildings and equipment

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Definitions:

Common Stockholders

Owners of common shares in a corporation, having voting rights and potentially receiving dividends.

Cumulative Preferred

Refers to preferred stock where dividends that were not paid in the past must be paid out to preferred shareholders before dividends can be distributed to common shareholders.

Proposed Acquisition

A potential financial transaction where one company offers to purchase or merge with another entity.

Dividend Growth Model

A method for valuing a stock by assuming dividends grow at a constant rate indefinitely and calculating the present value of the forecasted dividends.