The Quantity of Reserves That Banks Must Hold Against Deposits

question 162

Multiple Choice

The quantity of reserves that banks must hold against deposits is called

• A) the reserve ratio.
• B) excess reserves.
• C) total reserves.
• D) required reserves.

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Definitions:

Future Sales

Projected revenue figures based on historical data, market analysis, and other predictive models, indicating the expected amount of products or services a company will sell.

Accounts Receivable Period

The average number of days it takes a company to collect payment after a sale has been made, indicative of cash flow and credit practices.

Operating Cycle

The duration of time from the acquisition of goods for resale or the start of a service to the receipt of payment from customers.