The required reserve ratio is the
A) amount of excess reserves the bank holds just in case.
B) total amount of reserves the bank holds in its vaults.
C) total amount of reserves the bank holds at the Fed.
D) amount of reserves banks are required by the Fed to be held as a percentage of the bank's deposits.
E) amount of reserves banks are required by the Fed to be held as a percentage of the bank's loans.
D
You might also like to view...
According to the graph shown, area B represents:
These are the cost and revenue curves associated with a monopolistically competitive firm.
A. profits earned in the short run.
B. consumer surplus.
C. producer surplus.
D. deadweight loss.
Which of the following is the most sensitive to interest rate changes?
a. The demand for non-durable goods. b. The demand for inexpensive goods. c. The demand for durable goods. d. The demand for necessities. e. The demand for services.
A terrible storm wipes out 70 percent of the peanut crop. Explain and show graphically how this will affect the market for peanut butter and the market for jelly, a complementary good
Since the 1980s, banks and thrifts have lost their share of the financial services industry and control over financial assets.
Answer the following statement true (T) or false (F)