1) The largest percentage of banks” holdings of securities consist of
A) Treasury and government agency securities.
B) tax exempt municipal securities.
C) state and local government securities.
D) corporate securities.
2) Which of the following bank assets is the most liquid?
A) Consumer loans
B) Reserves
C) Cash items in process of collection
D) U.S. government securities
3) Secondary reserves include
A) deposits at Federal Reserve Banks.
B) deposits at other large banks.
C) short term Treasury securities.
D) state and local government securities.
4) Because of their ________ liquidity, ________ U.S. government securities are called secondary reserves.
A) low; short term
B) low; long term
C) high; short term
D) high; long term