Buffer reserves at DIs are

Question $4$ options:

$1)$

reserves in excess of the minimum required reserves.

$2)$

government securities that do not qualify as required reserves, but that can be converted to cash quickly.

$3)$

the portion of reserves that are calculated at a rate of ten percent of deposits.

$4)$

non$-$government securities and loans that must be converted into cash.

$5)$

the portion of life insurance company assets that require minimum reserves.