A Reserve Requirement Set by the Federal Reserve Is The

question 113

Multiple Choice

A reserve requirement set by the Federal Reserve is the:

• A)minimum ratio of reserves to bank deposits that commercial banks are allowed to maintain.
• B)maximum ratio of reserves to bank deposits that commercial banks are allowed to maintain.
• C)minimum amount of currency banks must hold in their vaults.
• D)maximum amount of currency banks are allowed to hold in their vaults.

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Definitions:

Kohlberg

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