The Amount That a Bank Is Legally Required to Keep

question 121

Multiple Choice

The amount that a bank is legally required to keep on hand is called the:

• A) required reserves.
• B) demand deposits.
• C) federal funds.
• D) reserve ratio.

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Definitions:

Cognitive Abilities

Mental capabilities involved in learning, reasoning, problem solving, and adapting to new situations.

Encoding

The first step of transforming data into a format that can be preserved in memory.

PKU

Short for Phenylketonuria, a genetic disorder characterized by the inability to metabolize phenylalanine, leading to its accumulation and potential brain damage.

Genetic Disorder

A disease or condition caused by an abnormality in an individual's DNA, ranging from minor to severe effects on health and development.