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2) Write briefly on the following: (20 points) a) Required reserve - is the least amount of balance that the fed requires a bank to
2) Write briefly on the following: (20 points) a) Required reserve - is the least amount of balance that the fed requires a bank to hold on deposits with the fed or in vault cash. b) Excess reserve-is apart of the reserves that a bank holds over and above for the legal requirement. c)) Liability management - is the method used by banks to maintain a balance between the matures of its assets and liabilities to continue to have liquidity. d) Volatility of interest rate
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