In the context of monetary policy, the _____ is a rule set by the Fed, which specifies the minimum amount of funds a bank must hold, expressed as a percentage of the bank's deposits.
A) debt ceiling
B) statutory framework
C) reserve requirement
D) fiscal drag

Question

Quizplus · Accepted Answer

The reserve requirement is a regulation set by the Federal Reserve that determines the minimum amount of reserves a bank must hold against its deposits.

In the Context of Monetary Policy, the _____ Is a Rule