Minimum Reserve Requirements Stipulate

question 93

Multiple Choice

Minimum reserve requirements stipulate:

• A) the value of a bank's capital to its risk-weighted portfolio of assets.
• B) the proportion of deposits to be held by a bank in the form of cash.
• C) the percentage of deposits to be held by a bank in the form of gold.
• D) the ratio of reserves to be held as near-liquid assets.

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Definitions:

Tay-Sachs Disease

A serious genetic disease in which abnormal lipid metabolism in the brain causes mental deterioration in affected infants and young children; inheritance pattern is autosomal recessive.

Autosomal Recessive

A mode of inheritance in which a trait or disorder is expressed in individuals who have two copies of a mutant gene on one of the non-sex chromosomes (autosomes).

Lipids

A broad group of naturally occurring molecules that include fats, waxes, sterols, fat-soluble vitamins (such as vitamins A, D, E, and K), monoglycerides, diglycerides, triglycerides, and phospholipids.

Hemophilia

A rare genetic disorder in which the blood's ability to clot is severely reduced, causing the patient to bleed severely from even a slight injury.