The Quantity of Reserves That Banks Must Hold Against Deposits

question 162

Multiple Choice

The quantity of reserves that banks must hold against deposits is called

• A) the reserve ratio.
• B) excess reserves.
• C) total reserves.
• D) required reserves.

---

Definitions:

Special Provisions

Special arrangements or measures taken to accommodate specific needs of individuals or groups in various contexts, such as education or employment.

Concrete-Operational Children

Children in the Piagetian stage (approximately age 7-12) who can think logically about concrete objects and events.

Decentration

A cognitive developmental term referring to the ability to consider multiple aspects of a situation rather than focusing on a single perspective.

Transitivity

The principle that if A > B and B > C, then A > C.