1 the federal reserve has recently decided to raise the, Ask an Expert

Management Studies

1. The Federal Reserve has recently decided to raise the amount banks must keep in their vault from 10% to 20%. If you deposit $25,000 into your savings account, how much of the $25,000 can the bank loan out?

a. $20,000 b. $2350 c. $9500 d. $22,000 e. $22,500

2. To help protect depositors, the Federal Reserve requires banks to keep a percentage of their deposits in their vault, which cannot be loaned out. This is called the:

a. Prime Rate b. Open Market Rate c. Discount Rate d. Demand Deposits e. Reserve Requirement

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92245861

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