3 Written Questions
3 Multiple Choice Questions
- The interest rate banks and other depository institutions charge one another on overnight loans made out of their excess reserves.
- The funds that banks and thrifts must deposit with the Federal Reserve Bank (or hold as vault cash) to meet the legal reserve requirement; a fixed percentage of the bank's or thrift's checkable deposits.
- A reserve requirement that is less than 100 percent of the checkable-deposit liabilities of a commercial bank or thrift institution.
3 True/False Questions
Reserve ratio → The currency a bank has in its vault and cash drawers.
Monetary multiplier → The currency a bank has in its vault and cash drawers.
Balance sheet → A statement of the assets, liabilities, and net worth of a firm or individual at some given time.