The fraction of deposits that banks must keep on hand or at the Federal Reserve is called the
A) discount rate.
B) deposit multiplier.
C) money multiplier.
D) required reserve ratio.
Correct Answer:
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Q255: The interest rate that the Fed charges
Q256: The discount rate is the interest rate
A)
Q257: The minimum percentage of deposits that a
Q258: Required reserves for a commercial bank
A) are
Q259: Federal Reserve policy tools include all of
Q261: The majority of money is created when
A)
Q262: An open market operation occurs when the
Q263: Excess reserves are
A) actual reserves minus desired
Q264: Bank managers lend the excess reserves created
Q265: If required reserves are $150 and deposits
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