A Bank's Required Reserves Are Calculated by Multiplying ________

question 429

Multiple Choice

A bank's required reserves are calculated by multiplying ________.

• A) its deposits by the required reserve ratio
• B) the sum of its deposits and cash in its vault by the reserve ratio
• C) cash in its vault by the required reserve ratio
• D) the gold in its vault by the reserve ratio

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Definitions:

Systematics

The scientific study of the diversity of organisms and their evolutionary relationships.

Diversity

The condition of having or being composed of differing elements: variety; especially: the inclusion of different types of people (such as people of different races or cultures) in a group or organization.

Evolutionary Relationships

The connections among species or groups of organisms that show how they are related through evolution, often depicted in a phylogenetic tree.

Organisms

Living entities that can function independently, ranging from microscopic bacteria to complex animals and plants.