Which of the Following Best Defines Reserve Requirements

question 69

Multiple Choice

Which of the following best defines reserve requirements?

• A)They are regulations concerning the amount banks are allowed to borrow from the central bank.
• B)They are regulations concerning the amount of reserves banks must hold against deposits.
• C)They are regulations concerning reserves banks must hold based on the number and type of loans they make.
• D)They are regulations concerning the interest rate at which banks can borrow from the central bank.

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