The Ratio of Actual Reserves to Total Deposits at the Fed

question 321

Multiple Choice

The ratio of actual reserves to total deposits at the Fed and vault cash is called

• A)a certificate of deposit.
• B)the gold reserve.
• C)fractional reserve banking.
• D)the fractional reserve ratio.

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Definitions:

Income From Operations

This is a measure of the profit made from a business's core operations, excluding revenues and expenses from non-operational activities.

Invested Assets

Funds or resources that have been allocated into various types of investments, such as stocks, bonds, or real estate, with the expectation of generating income or profit.

Minimum Return

The lowest acceptable return on an investment, set by an investor or implied by a financial model or market expectation.

Residual Income

The amount of net income an entity generates beyond its required rate of return on its investments.