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Question

Quizplus · Accepted Answer

Required reserves refer to the percentage of customer deposits that banks are required to hold as reserves. Primary reserves refer to the most liquid assets held by banks, such as cash and deposits with the central bank, which can be used to meet short-term liquidity needs. There is a significant difference between primary reserves and secondary reserves. Secondary reserves are assets that can be converted into cash relatively quickly but are not as liquid as primary reserves. Therefore, the best choice is C as required reserves are different from primary reserves, but they can be similar to secondary reserves.

There Is Virtually No Difference Between