Given the Above Data

question 13

Multiple Choice

Given the above data:
What is the rate of exchange of shares?

• A) 2
• B) 1/2
• C) 4
• D) 1/4

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Definitions:

Excess Reserves

The reserves held by banks in excess of what is required by regulations, which can be loaned out to generate additional income.

Required Reserves

The portion of depositors' balances that banks must have on hand as cash or as deposits with the central bank, mandated by the regulatory body.

Total Reserves

The sum of a bank's deposits at the central bank and the cash in its vault available for immediate withdrawal.

Legal Reserve

The minimum amount of funds that a bank or financial institution must hold in reserve against deposits, as mandated by regulatory authorities.