Commercial banks hold a fraction of their deposits in cash in their vaults (or as deposits with the central bank) .This fraction is known as
A) the required reserve.
B) the excess reserve ratio.
C) the fractional reserve.
D) the reserve ratio.
E) the target reserve.
Correct Answer:
Verified
Q45: What is a commercial bank's actual reserve
Q46: What is a commercial bank's target reserve
Q47: What are "excess reserves" for a commercial
Q48: Consider a new deposit of $10 000
Q49: What is a bank run?
A)A situation where
Q51: Consider the following list of entries that
Q52: Which of the following entries would appear
Q53: An example of "interbank activities" in the
Q54: Which of the following statements about reserve
Q55: Without a central bank,commercial banks in Canada
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents