Total Reserves in the Banking System Consist Of

question 103

Multiple Choice

Total reserves in the banking system consist of:

• A)vault cash held at commercial banks and other depository institutions
• B)reserve deposits held at Federal Reserve banks
• C)currency in circulation
• D)both a and b

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Definitions:

Debt To Income Ratio

A personal finance measure comparing an individual's debt payments to their overall income, often used by lenders to assess borrowing capacity.

Government Debt

The total amount of money that a government owes to creditors, which can include foreign governments, domestic banks, and other financial institutions.

Lifetime Income

The total amount of money earned by an individual over the course of their life.

Consumption Tax

A tax on the purchase of goods and services, paid directly by consumers.