- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 4. Monetary Policy
- Subject 2. Monetary Policy Tools and Monetary Transmission
CFA Practice Question
Banks must keep a percentage of their deposits on hand as ______.
B. required reserves
C. safe deposit reserves
A. excess reserves
B. required reserves
C. safe deposit reserves
Correct Answer: B
Required reserves are reserves commercial banks must hold at the Fed.
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