_____ refers to the percentage of the assets in cash or another liquid form that banks are required to maintain.
A)Float
B)Trade deficit
C)Exchange rate
D)Reserve currency
E)Bank reserve

Question

Quizplus · Accepted Answer

The percentage of the assets that banks are required to maintain in cash or liquid form is known as bank reserve. It is a type of mandatory reserve that is set by the central bank to ensure financial stability and prevent bank runs. Banks must maintain a certain level of reserves, typically based on a percentage of their deposits, as a cushion against unexpected withdrawals or economic shocks. This reserve requirement helps to ensure that banks have enough liquidity to meet their obligations and avoid default.

_____ Refers to the Percentage of the Assets in Cash