A Reserve Requirement of 40 Percent Would Mean That Each

question 62

Multiple Choice

A reserve requirement of 40 percent would mean that each dollar of reserves could support ____ of demand deposits.

• A)​$0.40
• B)​$1.60
• C)​$2.50
• D)​$4.00

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Definitions:

Market Opportunity

The identification of a specific market need that can be met by a new product or service, offering potential for business growth.

Sole Proprietor

A business owned and run by one individual where there's no legal distinction between the owner and the business entity.

Scalability

The capability of a system, business model, or product to handle a growing amount of work or to be enlarged to accommodate that growth.

Equity

The value of an ownership interest in property or businesses, after deducting debts and liabilities.