The percentage of a bank's total deposits held in reserves, either as cash in the vault or as deposits at the local Federal Reserve bank, is:
a) the reserve ratio.
b) the reserve requirement.
c) excess reserves.
d) the money ratio.
Ans: a) the reserve ratio.
Economics
You might also like to view...
A textile manufacturing unit faces low productivity due to shirking by workers. Which of the following is a possible solution to increase productivity and retain employees?
A) The provision of a lower real wage B) The provision of a lower nominal wage C) The provision of minimum wages D) The provision of efficiency wages
Economics
Why is a college graduate more likely to get a job in management than is someone with only a high school diploma, even when the job has nothing to do with a specific type of education?
Economics