Excess Reserves Are Reserves That Banks Keep

question 16

Multiple Choice

Excess reserves are reserves that banks keep:

• A) in their vaults.
• B) at the central bank.
• C) to meet legal reserve requirements.
• D) above the legally required amount.

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Definitions:

Quantifier

A symbolic expression in logic that specifies the quantity of specimens in the domain of discourse that satisfy an open formula.

Atomic Open Sentence

A simple sentence in symbolic logic that contains variables but does not contain any logical connectives and cannot be further divided into simpler sentences.

Compound

A thing that is composed of two or more separate elements.

Atomic

Relating to atoms, the smallest component of an element having the chemical properties of the element.