The minimum amount of reserves a bank must hold with the Federal Reserve to back up its deposits is called a(n)

A. excess reserve.
B. time deposit.
C. demand deposit.
D. reserve requirement.


D. reserve requirement.

Economics

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Refer to Figure 19-7. Which of the following is true?

A) Indian exports to the United States are more expensive at exchange rates greater than $.02/rupee than at the equilibrium exchange rate. B) U.S. imports are more expensive at exchange rates greater than $.02/rupee than at the equilibrium exchange rate. C) To achieve an exchange rate greater than $.02/rupee, the Reserve Bank of India must buy surplus dollars with rupees. D) The rupee is overvalued at exchange rates less than $.02/rupee.

Economics

Imagine that Odyssey National is a brand new bank, and that its required reserve ratio is 10 percent. If it accepts a $1,000 deposit, then its required reserves balance will be:

a. $0. b. $90. c. $100. d. $900. e. $910

Economics

The Federal Reserve is run at the national level by _____

a. Congress b. the president c. a board of governors d. the federal government

Economics

Use the above figure. When the budget line rotates from "b" to "c"

A. the price of product J increases. B. the price of product K decreases. C. the price of product J decreases. D. the price of product K increases.

Economics