The Fed's Minimum Required Reserve Requirement for Checkable Bank Deposits

question 89

Multiple Choice

The Fed's minimum required reserve requirement for checkable bank deposits is:

• A)05%.
• B)3%.
• C)10%.
• D)50%.

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Definitions:

Excess Capacity

The situation where a company's production facilities can produce more goods than currently demanded by its market.

General Transfer-Prizing Rule

A principle used to determine the price at which goods and services should be transferred between departments within the same organization.

Opportunity Cost

The expense incurred by not choosing the second-best option available during a decision-making process.

Controllable Cost

Expenses that can be directly managed or influenced by a decision-maker within a specific time frame.