The Reserve-Deposit Ratio Is Determined By

question 33

Multiple Choice

The reserve-deposit ratio is determined by:

• A) the Federal Reserve.
• B) business policies of banks and the laws regulating banks.
• C) preferences of households about the form of money they wish to hold.
• D) the Federal Deposit Insurance Corporation (FDIC).

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Definitions:

Assignee

The party to whom rights or duties under a contract are transferred by another party (the assignor).

Notice of Assignment

A formal notification that a contract or property has been legally transferred from one party to another.

Novation

The process of replacing an existing obligation with a new one, thereby extinguishing the original contract and starting anew.

Privity of Contract

The relationship between parties in a contract that confers rights and obligations. It typically prevents a third party from enforcing or being subject to the terms of the contract.