The Peace Bank of Ohio has just received a $50 million credit at the local clearing house.Which type of factor affecting legal reserves is this for the bank?

Question

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The $50 million credit received by the Peace Bank of Ohio is a noncontrollable factor that increases legal reserves. Legal reserves refer to the amount of funds that a bank is required by law to hold either as cash in its vaults or as a deposit with the central bank. Legal reserve requirements are set by regulatory authorities, and banks have little control over them. Therefore, the $50 million credit received by the Peace Bank of Ohio is a noncontrollable factor that increases its legal reserves.

The Peace Bank of Ohio Has Just Received a $50