Reserve Requirements Are

question 271

Multiple Choice

Reserve requirements are

• A) rules covering the types of assets that banks may purchase.
• B) the minimum amount of an owner's financial resources that must be placed in a depository institution.
• C) rules covering the types of deposits that banks may offer.
• D) minimum percentages of deposits that banks must hold as reserves.

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Definitions:

Prototype Model

A model emphasizing that when people evaluate whether a given item reflects a certain concept, they compare the item with the most typical item(s) in that category and look for a “family resemblance” with that item’s properties.

Availability Heuristic

A prediction about the probability of an event based on the ease of recalling or imagining similar events.

Sternberg's Triarchic

A theory of intelligence that proposes three fundamental aspects: analytical, creative, and practical intelligence.

Gardner's Theory

A theory of multiple intelligences proposed by Howard Gardner, suggesting that individuals have eight or more relatively autonomous intelligences.