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Primary Reserves

Question 172

Multiple Choice

Primary reserves


A) include the cash assets of the firm under the heading "cash and balances due from depository institutions.
B) are short term securities held by banks that are quickly converted into cash at little cost to the banks.
C) reflects the bank's ability to meet depositor withdrawals.
D) reflects the bank's ability to keep the value of a bank's assets greater than its liabilities.

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