The Amount of Checkable Deposits That Banks Are Required by Regulation

question 40

Multiple Choice

The amount of checkable deposits that banks are required by regulation to hold are the

• A)excess reserves.
• B)required reserves.
• C)vault cash.
• D)total reserves.

---

Definitions:

Lower Prices

A strategy or condition where goods or services are offered for sale at reduced costs.

Bargaining Power of Suppliers

The ability of suppliers to influence the terms and conditions of the materials and goods they supply, affecting the buying company's costs and quality of inputs.

Degree of Rivalry

The intensity of competition among firms within the same industry or market.

Bargaining Power of Buyers

The ability of buyers to influence the price and terms of purchase due to their leverage over sellers.