18-18 the Minimum Average Daily Reserves Required in a Maintenance

question 70

True/False

18-18 The minimum average daily reserves required in a maintenance period is a percentage of the daily average demand deposits held by a bank during the computation period.

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Definitions:

Nonprice Rationing

Nonprice rationing is the allocation of goods or services using means other than price, such as waiting times or ration coupons, especially when there are shortages.

Coupons

Vouchers entitling the holder to a discount off a particular product or service.

Favored Customers

Customers who receive preferential treatment from sellers, often through better prices, terms, or product availability.

Misallocation

The inefficient distribution of resources in an economy.