Banks Hold Some Deposits on Reserve at the Fed Because

question 95

Multiple Choice

Banks hold some deposits on reserve at the Fed because

• A)the Fed requires every bank to hold at least $100 million on deposit at all times.
• B)the Fed will insure those deposits, but will not insure regular bank deposits.
• C)these are membership dues for being a member bank.
• D)these deposits meet the reserve requirements of the Fed.

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