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A company wants to select 1 project from a set of 4 possible projects. Which of the following constraints ensures that only 1 will be selected?
Excess Reserves
The reserves held by banks in excess of what is required by regulations, which can be loaned out to generate additional income.
Required Reserves
The portion of depositors' balances that banks must have on hand as cash or as deposits with the central bank, mandated by the regulatory body.
Total Reserves
The sum of a bank's deposits at the central bank and the cash in its vault available for immediate withdrawal.
Legal Reserve
The minimum amount of funds that a bank or financial institution must hold in reserve against deposits, as mandated by regulatory authorities.
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