The requirement on banks to hold only a portion of their deposits as reserves is
ID: 1206427 • Letter: T
Question
The requirement on banks to hold only a portion of their deposits as reserves is known as the federal reserve system. the fractional reserve banking system. the federal open market system. the federal deposit insurance system. The percentage of deposits that a bank must hold as reserves by law is known as total reserves. required reserves. excess reserves. the money multiplier. Total reserves is equal to required reserves minus excess reserves. required reserves plus excess reserves. required reserves times the required reserve rate. required reserves times the money multiplier.Explanation / Answer
8. b. the fractional reserve banking system
It is maintained by banks to meet the demand of depositors.
9. b. required reserves
10. b. required reserves plus excess reserves