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Figure 1
-Figure 1 shows an H-R diagram, with five stars labeled A through E. Which star has the largest temperature?
Reserve Ratio
The reserve ratio is the portion of depositors' balances that banks must have on hand as cash, determined by central banks to ensure stability and liquidity.
Reserves
Funds or material set aside or saved for future use, often referring to cash or other assets held by a bank or a company.
Fed
The Federal Reserve System, the United States' central bank, holds responsibility for implementing monetary policy.
Money Supply
The entire aggregate of monetary assets available at a certain period in an economy.
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