For reserve calculation purposes, the period that begins on a Thursday and ends on a Wednesday 14 days later is known as
A)the reserve maintenance period.
B)the reserve adjustment period.
C)the reserve computation period.
D)the contemporaneous accounting period.
E)None of the options.

Question

Quizplus · Accepted Answer

The period that begins on a Thursday and ends on a Wednesday 14 days later is known as the reserve maintenance period. This is the period during which banks must maintain a certain level of reserves, as required by the Federal Reserve. Therefore, option A is the correct choice.

For Reserve Calculation Purposes, the Period That Begins on a Thursday