Question:medium
Which of the following statement is untrue?
Which of the following statement is untrue?
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Primary reserves provide direct liquidity but do not earn interest. Secondary reserves are near-money instruments that provide both safety and interest income.
Updated On: Aug 5, 2026
- A commercial bank may hold excess reserves as a source of liquidity.
- A commercial bank must remain solvent to be profitable in the long run.
- A commercial bank must hold liquid assets to meet unexpected deposit outflows.
- A commercial bank's secondary reserves consist of its excess reserves and marketable money securities.
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The Correct Option is D
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