The Percentage of Deposits That Must Be Held as Reserves

question 131

Multiple Choice

The percentage of deposits that must be held as reserves is called

• A) excess reserves
• B) required reserves
• C) required reserves ratio
• D) transfer deposits

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Definitions:

Equity Method

An accounting technique used by firms to assess the profits earned through their investments in other companies, reflecting the share of earnings in its financial statements.

Controlling Interest

An ownership interest in a business entity through which a shareholder or group of shareholders can exert influence or control over management and operating policies.

Net Income

The total revenue minus expenses, taxes, and costs over a specific period, indicating the profit earned by a company.