Efficiency factor:

What is meant by the term "long-run competitive equilibrium?

What will be an ideal response?

The required reserve ratio is the:

a. actual amount of reserves that banks must hold. b. excess amount of reserves that a bank must hold. c. minimum amount of reserves the Fed requires a bank to hold. d. total amount of reserves that banks hold at all times. e. maximum amount of reserves that banks can hold to remain liquid.