The Reserve Requirement Requires

question 37

Multiple Choice

The reserve requirement requires:

• A) the Federal Reserve to set the interest rate for short-term loans.
• B) the federal government to insure all bank deposits of up to $250,000.
• C) the Federal Reserve to hold a minimum amount of gold and precious metals.
• D) the Treasury Department to reserve a portion of U.S. currency in the event of a national emergency.
• E) banks to have a certain amount of money on hand to back up their assets.

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Definitions:

Surface

The outermost layer or boundary of an object or material.

Easement

A nonpossessory right, established by express or implied agreement, to make limited use of another’s property without removing anything from the property.

Product of the Land

Refers to natural resources or crops that are produced, grown, or extracted directly from the land.

Joint Tenant

An individual co-owning property with one or more persons, where each owns an equal share, and upon death, the interest passes to the surviving co-owners.