The Excess Reserves Ratio Is ________ Related to Expected Deposit

question 209

Multiple Choice

The excess reserves ratio is ________ related to expected deposit outflows,and is ________ related to the market interest rate.

• A)negatively;negatively
• B)negatively;positively
• C)positively;negatively
• D)positively;positively

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Definitions:

Utility Function

A mathematical model used in economics to represent a consumer's preference ranking for different bundles of goods, showing satisfaction levels.

Consumption

The act of using goods and services to satisfy needs or wants.

Income

Financial gain derived from various sources such as employment, investments, or proprietorship, contributing to an individual's wealth.

Price

The monetary cost anticipated, called for, or disbursed in payment for an object.