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Commercial banks hold an account at the central bank in which they deposit:
ARevenues
BReserves
CReceipts
DRegisters
Answer & Solution
Correct answer: B. Reserves
1. The central bank acts as a bank for banks.
2. Funds held there back deposits at the commercial bank.
3. Those funds are reserves.
_Source: OpenStax Principles of Economics 3e, Chapter 28, Monetary Policy and Bank Regulation._
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