The Amount of Checkable Deposits That Banks Are Required by Regulation

question 40

Multiple Choice

The amount of checkable deposits that banks are required by regulation to hold are the

• A)excess reserves.
• B)required reserves.
• C)vault cash.
• D)total reserves.

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Definitions:

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a particular price.

Chocolate

A sweet, typically brown food preparation of Theobroma cacao seeds, roasted and ground, often flavored, as with vanilla, and used as a confection or as a flavoring ingredient.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, indicating the sensitivity of demand to price changes.

Linear

Pertaining to a relationship or an equation that can be represented by a straight line in a graphical representation, illustrating a constant rate of change.