Minimum cash reserves fixed by law is a percentage of _________.

capital and reserves

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securities held

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aggregate deposit of the bank

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aggregate loans and advances

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Solution

The correct option is C aggregate deposit of the bank
The aggregate banking deposit is a calculation which determines if your money is federally insured from loss or can determine how much of your money is at risk with that financial institution.
Therefore, minimum cash reserves are a percentage of the aggregate deposits of the bank, by law.

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