Which statement is true?

Question

Quizplus · Accepted Answer

The reserve requirement represents the percentage of deposits that banks are required to hold in reserve. The higher the reserve requirement, the less money banks can lend and the lower the deposit expansion multiplier. Vault cash is considered a primary reserve, not a secondary reserve. Open market operations involve the sale or purchase of government securities by the Fed to increase or decrease reserves in the banking system. The comptroller of the currency oversees and regulates national banks, but does not typically handle check clearing.

Which Statement Is True