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For a Commercial Bank, the Term ʺReservesʺ Refers to

Question 123

Multiple Choice

For a commercial bank, the term ʺreservesʺ refers to


A) the cash in its vaults and its deposits at the Federal Reserve.
B) a bankerʹs concern ʺreservationʺ) in making loans to an individual without a job.
C) the net interest that it earns on loans.
D) the profit that the bank retains at the end of the year.

Correct Answer:

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