Required reserves are the percent of:
A) reserves that banks are required to return to customers.
B) loans that banks are required to hold as reserves.
C) deposits banks are required to hold as reserves.
D) loans the Fed is required to make to banks.

Question

Quizplus · Accepted Answer

Required reserves refer to the percentage of deposits that banks are required to hold as reserves by the Federal Reserve. These reserves are not returned to customers and do not refer to loans that banks have to hold or make. The Fed is not required to make loans to banks.

Required Reserves Are the Percent Of