6. the required reserve ration (rrr) set by the fed, is the amount of reserves banks must hold of each…

6. the required reserve ration (rrr) set by the fed, is the amount of reserves banks must hold of each deposit. true false

6. the required reserve ration (rrr) set by the fed, is the amount of reserves banks must hold of each deposit. true false

Answer

Brief Explanations:

The Required Reserve Ratio (RRR) is a proportion (not the actual amount) of deposits that banks must hold as reserves. For example, if RRR is 10%, for a $100 deposit, the bank holds $10 (10% of $100) as reserves. The statement wrongly says it's the amount (a specific quantity) instead of a proportion.

Answer:

False