A) $690 000 B) $410 000

question 22

Multiple Choice

• A) $690 000
• B) $410 000
• C) $280 000
• D) $270 000

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Definitions:

Primary Reserves

Liquid assets held by financial institutions as a primary means to meet immediate withdrawal demands or regulatory requirements.

Secondary Reserves

Liquid assets that can quickly be converted into cash but are not held as compulsory reserves by a financial institution.

Components

The individual parts or elements that make up a larger object or system.

Borrowed Reserves

Funds that commercial banks borrow from the central bank, often used to meet reserve requirements or to manage liquidity.