Requirements That Are Calculated Based on Actual and Forecasted Sales

question 9

Multiple Choice

Requirements that are calculated based on actual and forecasted sales are known as

• A)Planned independent requirements.
• B)Customer-planned independent requirements.
• C)Integrated independent requirements.
• D)Forecast-independent requirements.
• E)Customer-independent requirements.

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Definitions:

Deposit Liabilities

The amounts of money that banks owe to their depositors, stemming from the bank accounts like savings, checking, and time deposits.

Federal Reserve

The central bank of the United States, responsible for setting monetary policy, supervising and regulating banks, and ensuring the stability of the financial system.

Required Reserve Ratio

The fraction of deposits that a bank is required to hold in reserve and not lend out, as mandated by a central banking authority.

Excess Reserves

The reserves that banks hold in excess of the required minimum, often held in the central bank, which can lend them out to generate interest.