What Is the Reserve Requirement

question 61

Multiple Choice

What is the reserve requirement?

• A) the requirement that the federal government have at least 10 percent of the federal deficit on hand in liquid assets at all times
• B) the rule that every bank must have a certain amount of cash and negotiable securities on hand at all times
• C) the demand that there should never be more money circulating in print or computer accounts than there is gold in the U.S.Bank
• D) the requirement that the Federal Reserve Board limit the deficit to 10 percent of the gross domestic product
• E) the interest rate on loans between banks that the Federal Reserve Board influences by affecting the supply of money available

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