Asked by Raabiah Azeez on Apr 24, 2024
Verified
Which one of these is not a major aim (or goal) of bankers?
A) Maximizing their holdings of excess reserves
B) Protecting their depositors
C) Maintaining liquidity
D) Making high profits
Excess Reserves
The amount of reserves that a bank holds beyond the required minimum set by the central bank or regulatory authority.
Liquidity
Money or things that can be quickly and easily converted into money with little or no loss of value.
Profits
The financial gain that is achieved when the amount of revenue generated from business activities exceeds the expenses, costs, and taxes needed to sustain the activity.
- Comprehend the aims and responsibilities of the Federal Reserve system.
Verified Answer
NP
NAKYRA PROPHET SMITHMay 02, 2024
Final Answer :
A
Explanation :
Maximizing holdings of excess reserves is not a major aim of bankers as excess reserves do not generate significant income for banks. However, maintaining liquidity, protecting depositors, and making high profits are important goals for bankers.
Learning Objectives
- Comprehend the aims and responsibilities of the Federal Reserve system.