Every Bank Is Required to Hold a Certain Amount of Money

question 80

Multiple Choice

Every bank is required to hold a certain amount of money on hand.This is called the:

• A) minimum reserve
• B) minimum requirement
• C) reserve requirement
• D) emergency requirement
• E) safety net requirement

---

Definitions:

Preference Decisions

Choices made between alternatives based on personal or organizational preferences, often relating to resource allocation.

Acceptable Investments

Financial assets or securities deemed suitable for purchase based on an investor's risk tolerance, investment strategy, and financial goals.

Payback Periods

The length of time required to recover the original investment cost through the generated returns.

Profitable

A financial state where earnings exceed expenses, resulting in a positive net income.