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:

Strict Liability

A legal principle that holds an individual or entity responsible for their actions or products, without the need to prove negligence or fault.

Fault

Responsibility for wrongdoing, error, or negligence, often determining liability in legal contexts.

Comparative Negligence

A legal doctrine in tort law that reduces the amount of damages a plaintiff can recover in a negligence-based claim, based upon the degree to which the plaintiff's own negligence contributed to cause the injury.

Assault

A deliberate action by someone that causes another person to fear an immediate harmful or offensive touch.