The Ratio of a Bank's Total Reserves to Its Total

question 90

Multiple Choice

The ratio of a bank's total reserves to its total transactions deposits is known as the

• A)Required reserves.
• B)Reserve ratio.
• C)Excess reserves.
• D)Deposit ratio.

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Definitions:

Entry Barriers

Obstacles that make it difficult for new firms to enter a market, including high start-up costs, stringent regulations, and strong incumbent competition.

Brand Loyalty

The tendency of consumers to continuously purchase one brand's products over competing brands due to preference or satisfaction.

Monopoly Power

The ability of a single producer or seller in a market to control prices and exclude competition, often leading to less choice and higher prices for consumers.

Cartels

An agreement among competing firms to control prices or exclude entry of a new competitor in a market, often to maximize profits collectively.