The percentage of deposits that must be held as reserves is called
A) the bank reserve percentage
B) the required reserve ratio
C) the excess reserve ratio
D) the fractional reserve percentage

Question

Quizplus · Accepted Answer

The required reserve ratio refers to the percentage of deposits that banks are required to hold as reserves. This ratio is set by the central bank, and it is used to control the money supply in the economy.

The Percentage of Deposits That Must Be Held as Reserves