Question

9. Why are US and Australian government securities referred to as a banks secondary reserves? A. They are the same thing as vault cash. C. Their current market value may count toward meeting a banks legal reserve requirements Banks are legally required to hold a certain minimum amount of these securities. D.
0 0
Add a comment Improve this question Transcribed image text
Answer #1

This is because of the fact that there are certain amount of reserved that are to be held in the federal reserve both by the Australian as well as the US federal Bank on the whole and that is the reason why they are called as secondary reserves.

Therefore (D) is the answer

Add a comment
Know the answer?
Add Answer to:
9. Why are US and Australian government securities referred to as a bank's secondary reserves? A....
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Explain how an increase in national income in Canada and Mexico, causing them to invest more...

    Explain how an increase in national income in Canada and Mexico, causing them to invest more into the United States impacts the loanable funds market, what happens to the interest rate in the US and why? What happens to US GDP and why?   Does foreign investment impact the loanable funds market in the same way that baby boomer's retiring will? Why or why not? Is foreign investment a good or bad thing for the US? Explain how having positive time...

  • DJ. It has $559 in reserves and $9445 in loans. ? 2. The ability of banks...

    DJ. It has $559 in reserves and $9445 in loans. ? 2. The ability of banks to create money has its source in which of the following A. the 100 percent reserve requirement B. fractional-reserve banking (i.e. less than 100 percent reserve requirement) C. the ability of the government to mint as much currency as it wishes D. the banks' ability to issue currency (bank notes) of their own ? 3. Which of the following items is a liability to...

  • Why would we see the prices on US government bonds suddenly rise? Multiple Choice Bond prices...

    Why would we see the prices on US government bonds suddenly rise? Multiple Choice Bond prices can only rise if the US government pays more interest on these investments They would rise if there was suddenly lots of bad economics news like higher unemployment an increase in natural disasters like explding volcanoes, or the start of new wars le China attacks Taiwan), then we would see bond prices rise on US government bonds If we had a sudden explosion of...

  • answer please 25. A bank borrows money from another bank on an overnight basis to meet...

    answer please 25. A bank borrows money from another bank on an overnight basis to meet reserve requirements in the: a. stock market. b. bond market. c. Federal funds market. d. U.S.Treasury bill market. 26. Fiscal policy in the United States is the responsibility of the: a. US Treasury b. Federal Reserve c. Internal Revenue Service d. US Congress and Administration 27. Monetary policy in the United States is the responsibility of the: b. Federal Reserve a. US Treasury c....

  • True/False (1 Point each) 1) When bond prices decrease, their yields to maturity increase. 2) The...

    True/False (1 Point each) 1) When bond prices decrease, their yields to maturity increase. 2) The best forms of money and financial systems enjoy the benefits of trust, belief, and stability. 3) A fundamental function of a commercial bank is to take in deposits and make loans. 4) Traditional banks operate with low margins and high leverage. 5) Rates on bonds issued by a government can be negative. 6) ) The default risk premium is the same as the credit...

  • QUESTION 9. In recent years, it has been suggested that both China and the US have...

    QUESTION 9. In recent years, it has been suggested that both China and the US have engaged in currency manipulation or ‘competitive devaluations’. All else the same, from this we can conclude: A.  Chinese goods will be less expensive in US markets in the short-run, but US goods will be more expensive in China. B.  US goods will be less expensive in China in the short-run, but Chinese goods will be more expensive in the US. C. Chinese and US made goods...

  •   1. When it comes to financial matters, the views of Aristotle can be stated as:...

      1. When it comes to financial matters, the views of Aristotle can be stated as: a. usury is nature’s way of helping each other. b. the fact that money is barren makes it the ideal medium of exchange. c. charging interest is immoral because money is not productive. d. when you lend money, it grows more money. e. interest is too high if it can’t be paid back.  2. Since 2008, when the monetary base was about $800 billion,...

  • 2006, interest rates increased from 5% to 7%, when this happens consumers are A. less likely...

    2006, interest rates increased from 5% to 7%, when this happens consumers are A. less likely to save, that is, sell a financial asset. B. more likely to save, that is, sell a financial asset. C. less likely to save, that is, purchase a financial asset. D. more likely to save, that is, purchase a financial asset. I. In 2. If commercial banks hold all their assets in the form of required reserves: A. only they will be able to...

  • Read the attached article. Do you feel one style of banking control is more stable than...

    Read the attached article. Do you feel one style of banking control is more stable than the other? Why? Does one banking method minimize market volatility and risk better or is it just packaged differently? Do you feel the US (Western) Banking system can better control the patterns of behavior going forward that have caused economic damage in the past? Should the Fed continue its stimulus policy, reduce it or abandon it entirely (Google some recent articles to research this)?  (Please...

  • Case assignments must be completed with a written 2-page study on the assigned case questions in...

    Case assignments must be completed with a written 2-page study on the assigned case questions in the textbook. The format requested for these assignments is based on elaborating and including two basic parts in the essay: 1) in a bullet presentation style (one phrase each bullet), list a summary of the key issues, situations, problems, opportunities and threats you may identify as relevant; 2) answer all the questions listed in each case in two or three sound paragraphs. Use the...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT