In determining reserves, the banks and the Federal Reserve currently use:
A)a leading reserve accounting system.
B)a contemporaneous reserve accounting system.
C)a lagging reserve accounting system.
D)an actual reserve accounting system.
E)a holding reserve accounting system.

Question

Quizplus · Accepted Answer

The Federal Reserve uses a lagging reserve accounting system, where reserve requirements are based on deposit levels from a previous period.

In Determining Reserves, the Banks and the Federal Reserve Currently