Match the term with the definition:What the bank is holding - or it's reserve depositA. Primary ReserveOccurs if the bank holds more than the required minimum on reserveB. Secondary ReserveThe minimum amount of vault cash and deposits at the Federal Reserve district bank that must be heldC. Required ReserveA bank's vault cash and it's deposits at the Federal ReserveD. Actual ReservesTreasury bills, notes, certificates, and bonds that will mature in less than a yearExcess Reserves

The central bank of a nation sets the required reserve ratio and each commercial bank has to keep…

Answered: What the bank is holding - or it's…

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter11: The Monetary System

Section: Chapter Questions

Problem 4PA

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Match the term with the definition:

What the bank is holding - or it's reserve deposit	A. Primary Reserve
Occurs if the bank holds more than the required minimum on reserve	B. Secondary Reserve
The minimum amount of vault cash and deposits at the Federal Reserve district bank that must be held	C. Required Reserve
A bank's vault cash and it's deposits at the Federal Reserve	D. Actual Reserves
Treasury bills, notes, certificates, and bonds that will mature in less than a year	Excess Reserves

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