The Amount of Required Reserves a Bank Holds Depends on the

question 129

Multiple Choice

The amount of required reserves a bank holds depends on the

• A) required reserve ratio.
• B) demand-deposit ratio.
• C) excess-reserve ratio.
• D) currency ratio.

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Definitions:

Unrealized Gain Or Loss

Changes in the fair value of equity or debt securities for a period.

Dividend Yield

The ratio of a company's annual dividends paid to its share price, expressed as a percentage.

Valuation Allowance

A reserve created by a company to offset a portion of the deferred tax assets when it is more likely than not that some portion or all of the deferred tax assets will not be realized.

Business Combination

A business making an investment in another business by acquiring a controlling share, often greater than 50%, of the outstanding voting stock of another corporation by paying cash or exchanging stock.