Examlex
Which of the following regarding the Haversian System is false?
Required Reserve Ratio
The fraction of deposits that banks are legally mandated to keep as reserves and not lend out.
Excess Reserves
The reserves held by financial institutions in excess of the minimum reserve requirements set by central banks; these are not used for lending and can influence the money supply.
Commercial Banks
Financial institutions that provide services such as accepting deposits, providing business and personal loans, and offering basic investment products.
Required Reserves
The minimum amount of funds that a bank must hold in reserve against deposit liabilities, as mandated by central banking authorities.
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