The Required Reserve Ratio Is the

question 51

Multiple Choice

The required reserve ratio is the

• A)amount of excess reserves the bank holds just in case.
• B)total amount of reserves the bank holds in its vaults.
• C)total amount of reserves the bank holds at the Fed.
• D)amount of reserves banks are required by the Fed to be held as a percentage of the bank's deposits.
• E)amount of reserves banks are required by the Fed to be held as a percentage of the bank's loans.

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Definitions:

Optimal Decisions

In finance, decisions that are considered the best under the given circumstances, maximizing benefits while minimizing costs and risks.

Trin Ratio

A technical analysis indicator that compares the number of advancing and declining stocks to the volume of advancing and declining stocks.

Advancing Issues

Refers to the number of stocks whose prices have closed higher than they did in the previous trading session, often used as an indicator of market sentiment.

Framing

Decisions are affected by how choices are described, for example, whether uncertainty is posed as potential gains from a low baseline level, or as losses from a higher baseline value.