Multiple Choice
A reserve requirement set by the Federal Reserve is the:
A) minimum ratio of reserves to bank deposits that commercial banks are allowed to maintain.
B) maximum ratio of reserves to bank deposits that commercial banks are allowed to maintain.
C) minimum amount of currency banks must hold in their vaults.
D) maximum amount of currency banks are allowed to hold in their vaults.
Correct Answer:
Verified
Correct Answer:
Verified
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