Which of the Following Is True Regarding the Required Reserve

question 548

Multiple Choice

Which of the following is true regarding the required reserve ratio?

• A) The ratio determines the legally required amount of reserves a bank must hold.
• B) The ratio determines the amount of excess reserves a bank must hold.
• C) The ratio is only enforced against banks that are operating in a risky manner.
• D) None of the above answers is correct.

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