The United States Has a ________, Which Means That a Bank

question 25

Multiple Choice

The United States has a ________, which means that a bank must hold or "reserve" some portion of the funds that savers deposit in a form approved by the Fed.

• A) fractional reserve banking system
• B) required reserve ratio
• C) total reserves
• D) excess bank reserves

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Definitions:

Income Statement

The income statement is a financial statement that shows a company's revenues and expenses over a specific period, demonstrating how the revenues are transformed into net income or loss.

Disclosed

Information that has been made known or revealed, typically referring to facts that were previously private or confidential.

Expenses

The costs incurred in the process of generating revenue, including costs like rent, utilities, payroll, and materials.

Assets

Resources owned by a company from which future economic benefits are expected to flow to the entity, including cash, inventory, and property.