The Minimum Percent of Deposits That Banks Must Hold and Cannot

question 151

Multiple Choice

The minimum percent of deposits that banks must hold and cannot loan is determined by the

• A)interest rate.
• B)discount rate.
• C)required reserve ratio.
• D)federal funds rate.
• E)ratio of M2 to M1.

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Definitions:

Psychosocial Development

A theory that describes the impact of social experiences across eight stages of human development, from infancy to adulthood, popularized by Erik Erikson.

Freud's Theory

A set of psychoanalytic theories proposed by Sigmund Freud that focus on the unconscious mind, developmental stages, and the interplay of ego, superego, and id.

Society

A large group of individuals living together in a more or less ordered community, sharing customs, laws, and organizations.

Operant Conditioning

An educational method that adjusts the intensity of an action by using rewards or penalties.