All Banks Must Maintain a Specified Percentage of Their Deposits

question 15

True/False

All banks must maintain a specified percentage of their deposits in a non-interest-bearing account at one of the twelve Federal Reserve Banks. These specified percentages are called required reserves, and the dollar amounts based on them that are required to be kept on deposit at a Federal Reserve Bank are called reserve ratios.

---

Definitions:

Perception

The process by which individuals interpret and organize sensory information to make meaningful interpretations of the world.

Lengel-Daft Contingency Model

is a theoretical framework suggesting that the effectiveness of communication in organizations depends on the alignment between the information processing needs and the capacity of the information system.

Communication Medium

The channel or method used to convey messages or information between sender and receiver.

Telecommuting

A work arrangement in which employees do not commute to a central place of work but use telecommunications technology to work from home or another remote location.