question 42 (5 points) the quantity of reserves that banks must hold against deposits is called 1) the…

question 42 (5 points) the quantity of reserves that banks must hold against deposits is called 1) the reserve ratio. 2) excess reserves. 3) total reserves. 4) required reserves.

question 42 (5 points) the quantity of reserves that banks must hold against deposits is called 1) the reserve ratio. 2) excess reserves. 3) total reserves. 4) required reserves.

Answer

Brief Explanations:

Required reserves are the amount of reserves that banks are legally - obligated to hold against deposits. The reserve ratio is a ratio, excess reserves are reserves above the required amount, and total reserves are the sum of required and excess reserves.

Answer:

  1. required reserves