The Required Reserve Ratio Is

question 90

Multiple Choice

The required reserve ratio is:

• A) the minimum amount of reserves the Fed requires a bank to hold.
• B) the interest rate that the Fed charges banks who borrow from it.
• C) the interest rate on loans made by banks to other banks.
• D) the maximum percentage of the cost of a stock that can be borrowed from a bank, with the stock offered as collateral.
• E) an appeal by the Fed to banks, asking for voluntary compliance with the Fed's wishes.

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