Question

1. What is the required reserve ratio? (1 poi

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the deposits that commercial con
the amount of money a bank has
the portion of a deposit that a ban
the ratio of commercial to person.
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Answer 1

Answer: the answer is C) the portion of a deposit that a bank must keep on hand

Step-by-step explanation: took the quiz!

Answer 2

The required reserve ratio is the portion of a deposit that a bank must keep on hand.

Explanation:

The required reserve ratios are the fraction of the primary funds (deposits of non-banks) of banks that banks must hold in a Federal Reserve account. Reserve requirements are one of the central monetary policy instruments of the Federal Reserve. Compared to changes in interest rates, it is more effective. If the Federal Reserve wants to put pressure on reducing the amount of money in circulation, it will increase the reserve requirements and vice versa.