The ____ Is Directly Responsible for Setting Reserve Requirements

question 50

Multiple Choice

The ____ is directly responsible for setting reserve requirements. ​

• A)Federal Advisory Council
• B)FOMC
• C)Board of Governors
• D)President of the United States

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Definitions:

Deposit Multiplier

The ratio that describes the potential increase in bank deposits that can result from an increase in banks' reserves through the fractional reserve banking system.

Banking

The business conducted or services offered by a bank, including deposits, loans, and currency exchange.

Interest Rate

The ratio of a loan that represents interest expenses to the borrower, typically articulated as an annual percentage of the loan yet to be repaid.

Selling Price

The price at which an item or service is sold to buyers.