What Is the Role of a Foreign Key

question 195

Multiple Choice

What is the role of a foreign key?

• A)It is a primary key of one table that appears as an attribute in another table and acts to provide a logical relationship between the two tables.
• B)It is a unique way to identify each record.
• C)Is a field that uniquely identifies a give record in a table.
• D)All of these.

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Definitions:

Required Reserve Ratio

The fraction of deposits that a bank is required to hold in reserve and not lend out, as mandated by a central banking authority.

Excess Reserves

The reserves that banks hold in excess of the required minimum, often held in the central bank, which can lend them out to generate interest.

New Loans

Any sums of borrowed money that have recently been provided by a lender to a borrower.

Reserve Requirement

The minimum amount of reserves a bank must hold against deposits, set by the central bank, influencing the money supply and banking stability. A rephrased definition since "Required Reserves" is a similar concept.