The required reserve ratio
A) is the amount of money that banks require borrowers to reserve in their accounts.
B) is the fraction of a bank's total deposits that is required to be held in reserves.
C) increases when withdrawals from a bank are made.
D) is higher for banks that make riskier loans.
B
Economics
You might also like to view...
Which of the following trade agreements provides for the development of a single market among its members?
A) World Trade Organization B) European Union C) North American Free Trade Agreement D) Asian Pacific Economic Cooperation
Economics
Why do corporate boards of directors sometimes link top managers' compensation to the corporations' stock prices? How might tying compensation too closely to stock prices create an incentive for corporate fraud
What will be an ideal response?
Economics