A Bank May Hold Secondary Reserves, Such as U

A bank may hold secondary reserves, such as U.S. government securities because:

A) ​they pay higher interest rates than deposits at the Fed, and are easily converted into cash assets.
B) ​they pay higher interest rates than deposits at the Fed, even though they are hard to convert assets.
C) ​they pay lower interest rates than deposits at the Fed, but are more easily converted into cash assets.
D) ​they pay lower interest rates than deposits at the Fed, and are hard to convert into cash assets.

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free