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:

Executive Branch

The branch of government responsible for implementing and enforcing laws, usually led by a president or prime minister.

Administrative Law Judge

An official who presides over government agency hearings, making decisions on disputes, regulations, or rights.

Administrative Action

Proceedings and activities carried out by government agencies to enforce laws, regulations, and policies.

Final Order

The final decision of an administrative agency on an issue. If no appeal is taken, or if the case is not reviewed or considered anew by the agency commission, the administrative law judge’s initial order becomes the final order of the agency.