The Sum of the Coins and Currencies in the Bank's

question 14

Multiple Choice

The sum of the coins and currencies in the bank's vault and its deposit in the Fed is called:

• A)vault cash.
• B)transaction deposits.
• C)legal reserves.
• D)required reserves.
• E)loanable funds.

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Definitions:

Junk Bonds

High-risk, high-yield bonds issued to finance leveraged buyouts, mergers, or troubled companies.

High-Risk

Describes an investment or venture that carries a high level of uncertainty and the potential for significant loss.

Leveraged Buyouts

The acquisition of a company using a significant amount of borrowed money (debt) to meet the purchase cost.

Zero Bonds

Bonds that do not pay interest periodically but are sold at a deep discount from their face value, with the interest effectively accruing and being paid at maturity.