The Reserve Ratio Is Equal To

question 12

Multiple Choice

The reserve ratio is equal to:

• A)a chartered bank's demand-deposit liabilities divided by its desired reserve.
• B)a chartered bank's desired reserve divided by its demand-deposit liabilities.
• C)a chartered bank's demand-deposit liabilities multiplied by its excess reserves.
• D)a chartered bank's excess reserves divided by its desired reserve.

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Definitions:

Statute of Frauds

is a legal principle that requires certain types of contracts to be written and signed in order to be enforceable.

Executory Contracts

Contracts under which both parties to the agreement have duties remaining to be performed. If a contract's major obligations are unfulfilled by both parties, it is seen as executory.

One-Year Provision

The one-year provision is a legal clause, often found in statutes of frauds, which requires certain contracts to be in writing and signed if they cannot be performed within one year.

Majority Rule

A principle in democracy stating that the decisions and choices of the greater number of participants should guide the actions and policies of the group.