How Many Times Has the Fed Has Changed Reserve Requirements

question 17

Multiple Choice

How many times has the Fed has changed reserve requirements since 1995?

• A) never.
• B) about once a year.
• C) only once.
• D) only twice.

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Definitions:

Federal Reserve System

The central banking system of the United States, responsible for regulating the country's monetary policy and banking institutions.

Deposits In Reserve

Money that commercial banks are required to keep in the form of vault cash or deposits with the central bank, as a regulation to ensure banks can meet depositor demands.

Money Supply

The total amount of currency and other liquid instruments in a country's economy as of a particular time.

Leakage Current

The undesired flow of electrical current through an insulating medium or unintended path, often leading to inefficiencies or safety concerns.