Which of the following is not a reason that banks hold cash assets?
A) To meet customer's needs for currency.
B) To meet capital requirements.
C) To meet required reserves.
D) To compensate for correspondent bank services.
E) To assist in the check clearing process.

Question

Quizplus · Accepted Answer

Banks do not hold cash assets to meet capital requirements; capital requirements are met through equity and retained earnings, not cash reserves.

Which of the Following Is Not a Reason That Banks