Reserve Requirements

question 67

Multiple Choice

Reserve requirements:

• A) set the maximum amount of reserves a bank must hold.
• B) set the minimum amount of reserves a bank must hold.
• C) are established by Congress.
• D) are set by the American Bankers Association.

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Definitions:

Power Factor

The ratio of real power flowing to the load to the apparent power in the circuit, indicating the efficiency with which electrical power is converted into useful work output.

Reactive Power

The portion of electricity that does not result in useful work, typically present in AC circuits, and needed for maintaining the voltage levels necessary for active power transfer.

Apparent Power

The total power in an AC circuit, expressed in Volt-Amperes (VA), that combines both reactive and real power components.

Total Voltage

The voltage applied to the circuit.