Savings and Loan Regulators Allowed S&Ls to Include in Their

question 36

Multiple Choice

Savings and loan regulators allowed S&Ls to include in their capital calculations a high value for intangible capital called

• A)goodwill.
• B)salvation.
• C)kindness.
• D)retribution.

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Definitions:

Actual Reserves

The sum of money a bank holds in its vault or with the central bank, ready to satisfy withdrawal requests or comply with regulatory obligations.

Required Reserves

The minimum amount of funds that a bank must hold in reserve against deposits, as mandated by monetary authorities.

Excess Reserves

The reserves that banks hold over and above the legally mandated minimum to meet withdrawal demands.

Federal Reserve Open Market Committee

The branch of the Federal Reserve System responsible for influencing money supply and credit conditions through the trading of government securities.