The Portion of Deposits That a Bank Is Required to Hold

question 41

Multiple Choice

The portion of deposits that a bank is required to hold on reserve is referred to as its:

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

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Definitions:

Antique Reproductions

Replicas or copies of antique items, often made to mimic the style and appearance of the original pieces but created with modern materials or techniques.

Supply Curve

A graphical representation that shows the relationship between the price of a good or service and the quantity of that good or service that a supplier is willing and able to supply in the market.

Bumper Crops

Exceptionally large harvests of crops, usually resulting from favorable growing conditions.

Gross Incomes

The total income received before any deductions or taxes are subtracted.