Community Bank Jeffrey Is the Training Manager for the Community Bank in Bank

question 15

Multiple Choice

Community Bank
Jeffrey is the training manager for the Community Bank in Maryland. Jeffrey has developed a training program for all new employees that emphasizes understanding the basics of money. Jeffrey and the bank's management believe that if the employees understand the basics of money, they can utilize the information in their own personal finances as well as guide and answer questions from bank customers.
The bank recently hired Laila. She was hired at a high-level position because she brought with her extensive bank management experience. Laila's responsibilities included making sure that the reserve requirement would always be met and keeping track of the interest rate that the Federal Reserve System charged for loans to member banks.
-Refer to Community Bank. Because of her previous banking experience, Laila knows that a reserve requirement is

• A) the percentage of its deposits a bank must retain, either in its own vault or on deposit with its Federal Reserve District Bank.
• B) the percentage of its loans a bank must retain with its Reserve District Bank as deposits.
• C) the percentage of its deposits a bank must send in taxes.
• D) the percentage of its credit card balance a bank must retain in the customers' accounts.
• E) certain accounts a bank must reserve for really wealthy customers.