The percentage of checkable deposits that banks and other financial intermediaries are required to keep in cash reserves is known as:
A) the fractional reserve requirement.
B) the excess reserve requirement.
C) the required reserve ratio.
D) the discount rate.
E) M1.

Question

Quizplus · Accepted Answer

The required reserve ratio is the percentage of checkable deposits that banks and other financial intermediaries are required to keep in cash reserves. The other choices are not correct definitions/terms relating to this concept.

The Percentage of Checkable Deposits That Banks and Other Financial