The Total Amount of Required Reserves in the Banking System

question 51

Multiple Choice

The total amount of required reserves in the banking system is equal to the ________ the required reserve ratio and checkable deposits.

• A)sum of
• B)difference between
• C)product of
• D)ratio between

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Definitions:

Marginal

Relating to the additional cost or benefit associated with producing one more unit of a good or service.

Incremental

Relating to a small or gradual change or increase, often considered in the context of adjustments or improvements.

Opportunity

A set of circumstances that makes it possible to do something or achieve a particular goal.

Scarcity

Refers to the fundamental economic problem of having seemingly unlimited human wants in a world of limited resources.