When the Fed Requires Banks to Maintain Reserves,it Is Defined

question 112

Multiple Choice

When the Fed requires banks to maintain reserves,it is defined as:

• A)M1 plus balances in some savings accounts and money market mutuals.
• B)cash in their vaults plus deposits at district Federal Reserve banks or other banks.
• C)just cash in their vaults.
• D)M2 minus M1.

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Definitions:

Mining Industry

Refers to the sector involved in the extraction of minerals and other geological materials from the earth.

Consumer Culture

A societal framework where buying and consuming goods and services is a primary pursuit and indicator of social status or personal happiness.

Increasing Debt

This refers to a situation where an entity, be it an individual, company, or government, experiences a continuous rise in the amount of money owed to others.