The Reserve Ratio Refers to

question 222

Multiple Choice

The reserve ratio refers to

• A)the proportion of assets held in the form of cash or deposits in the Federal Reserve.
• B)the proportion of deposit liabilities that must be held in the form of cash or deposits in the Federal Reserve.
• C)the proportion of reserves that must be held in the form of vault cash.
• D)the proportion of reserves that can be loaned out.

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Definitions:

Antianxiety Drugs

Medications used to treat symptoms of anxiety by affecting neurotransmitter activity in the brain to induce relaxation.

Addictive

Having the quality of causing users to develop a dependency, often compelling them to repeatedly seek out and use the substance or activity.

Selective Serotonin Reuptake Inhibitors

A class of drugs often prescribed as antidepressants, which work by increasing the amount of serotonin in the brain.

Norepinephrine

A neurotransmitter and hormone that plays a key role in alertness and the fight-or-flight response, also involved in mood regulation.