When Banks Hold More Reserves Than Are Required, Such Reserves

question 101

Multiple Choice

When banks hold more reserves than are required, such reserves are called

• A) total reserves.
• B) required reserves.
• C) excess reserves.
• D) loan reserves.

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Definitions:

Sum of Squares for Regression

A measure in statistical analysis that quantifies the variation in a dependent variable explained by one or more independent variables.

SSR

Sum of Squares due to Regression, a measure used in statistical analysis to determine the variance explained by a linear regression model.

Economics

The social science that studies how individuals, governments, firms, and nations make choices on allocating resources to satisfy their wants and needs.

Income

The amount of money or its equivalent received during a period of time in exchange for labor or services, from the sale of goods or property, or as a profit from financial investments.