Which of the following is a valid statement?
A)Required reserve ratio = required reserves as a percentage to total deposits.
B)Required reserves = the maximum reserves required by the Fed.
C)Excess reserves = total reserves plus required reserves.
D)All of these.

Question

Quizplus · Accepted Answer

The required reserve ratio is the percentage of deposits that a bank must hold as reserves, not lend out.

Which of the Following Is a Valid Statement