The required reserve ratio is the ratio of reserves to ____________required by banking regulations.
A) deposits
B) profits
C) loans
D) cash

Question

Quizplus · Accepted Answer

The required reserve ratio is the ratio of reserves (which includes cash and deposits at the central bank) to deposits that banks are required to hold by banking regulations. This ratio is set by central banks to ensure that banks have enough reserves to cover withdrawals and avoid bank runs.

The Required Reserve Ratio Is the Ratio of Reserves to ____________Required