Figure 9.2 Using Figure 9.2, Match the Following

question 5

Multiple Choice

Figure 9.2
Using Figure 9.2, match the following:
-H zone.

• A)E
• B)A
• C)D
• D)C

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Definitions:

Required Reserves

The minimum amount of funds that a bank is required to hold in reserve against deposits made by customers, as mandated by regulatory authorities.

Required Reserve Ratio

The fraction of deposits that banks are required to keep on hand as reserves, either in cash or as deposits with a central bank.

Checkable Deposits

Deposits in financial institutions that can be withdrawn by writing a check or using a debit card.

Reserves

Assets held by financial institutions or central banks as a requirement or for ensuring liquidity in times of need, including cash, deposits, or securities.