- CFA Exams
- CFA Exam: Level I 2021
- Study Session 5. Economics (2)
- Reading 16. Monetary and Fiscal Policy
- Subject 1. What is Money?
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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