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.

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 time period that banks use to calculate their required reserves and make adjustments if necessary. Therefore, option A is the correct choice. The other options, such as reserve adjustment period and reserve computation period, are not commonly used terms in relation to reserve calculations. The last option, contemporaneous accounting period, is not relevant to reserve calculations.

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