The Regulation That Sets the Minimum Fraction of Deposits Banks

question 108

Multiple Choice

The regulation that sets the minimum fraction of deposits banks must hold in reserve is called the:

• A) reserve requirement.
• B) money multiplier.
• C) interest rate.
• D) dual mandate.

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Definitions:

Violation of the Lease

An act of failing to comply with the terms set forth in a lease agreement.

Future Interest

A legal right to property or an estate that becomes possessible or enjoyable at a future date.

Third Party

An entity not directly involved in a contract or agreement but who may be affected by its outcomes or can affect its execution.

Remainder

The part of an estate that is left after all other bequests and debts have been satisfied.