The reserve ratio (rr) in the banking system is:
A) cash balances held by the public relative to their outstanding bank loans.
B) cash balances held by banks relative to their outstanding loan assets.
C) cash and central bank deposits held by banks relative to their deposit liabilities.
D) cash balances held by businesses relative to accounts payable.
Correct Answer:
Verified
Q36: Fractional reserve banking mans:
A) banks hold cash
Q37: In a fractional-reserve banking system, the reserves/deposits
Q38: If the reserve/deposit ratio (rr) is 0.2
Q39: Banks create money, when banks:
A) extend loans
Q40: The currency ratio (cr) is:
A) the ratio
Q42: Which of the following statements is true?
A)
Q43: Consider a situation where the reserve ratio
Q44: Consider a situation where the reserve ratio
Q45: Assume that reserve ratio is 0.1 and
Q46: Assume that reserve ratio is 0.1 and
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