Which of the following is true regarding the required reserve ratio?
A) The ratio is only enforced against banks that are operating in a risky manner.
B) The ratio determines the amount of excess reserves a bank must hold.
C) The ratio determines the legally required amount of reserves a bank must hold.
D) None of the above answers is correct.
Correct Answer:
Verified
Q221: The required reserve ratio ranges from
A) 0
Q222: The interest rate that the Fed charges
Q223: The rate_ is the interest rate at
Q224: An open market operation involves
A) the Federal
Q225: In an open market purchase, the Fed
Q227: The required reserve ratio
A) is the fraction
Q228: The Fed buys securities and gives the
Q229: If the Federal Reserve purchases government securities,
A)
Q230: Required reserves for a commercial bank
A) are
Q231: The discount rate is the interest rate
A)
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