Which statement is true?

A) All large banks have to hold about 10 percent of their time deposits on reserve.
B) All small banks have to hold about 10 percent of their time deposits on reserve.
C) All banks have to hold about 10 percent of their time deposits on reserve.
D) None of the statements are true.

Time Deposits

Money deposited in a financial institution that cannot be withdrawn for a certain term or period of time without incurring penalties.

Large Banks

Financial institutions with a significant amount of total assets, offering a wide range of financial services.

Small Banks

Financial institutions with a smaller asset base and local focus providing banking services to individuals and businesses in their communities.