The Ratio of the Total Amount of Demand Deposits at a Bank

question 18

Multiple Choice

The ratio of the total amount of demand deposits at a bank to the amount kept as cash reserves is known as the:

• A) reserve ratio.
• B) demand deposit ratio.
• C) demand-reserve ratio.
• D) federal funds rate.

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Definitions:

Avoidant

A term often used in psychology to describe an individual who exhibits a preference for minimally emotional or detached relationships, typically as a defense mechanism.

Secure

In psychology, a term describing an attachment style where individuals display confidence in relationships, feeling comfortable with intimacy and independence.

Disorganized

Lacking structure or order; not systematically planned or coordinated, which can lead to confusion or chaos.

Ambivalent

Ambivalent describes a state of having mixed feelings or contradictory attitudes towards someone or something.