Which of the following equations best represents the relationship between required reserves and deposits?

Question

Quizplus · Accepted Answer

The equation RR = r_D F1F1F1S1F1F1F10 D represents the relationship between required reserves and deposits, where RR is the required reserves, r is the reserve requirement ratio, _D F1F1F1S1F1F1F10 are the factors that determine the value of deposits and D represents the level of deposits. This equation shows that required reserves are directly proportional to deposits, with the reserve requirement ratio as the constant of proportionality.

Which of the Following Equations Best Represents the Relationship Between