ECONOMICS
FOREIGN CURRENCY MARKETS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The ____ is a monetary policy tool that use to determine the amount of deposits that banks must hold.
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open market operations
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reserve requirements
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discount ratio
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federal funds rate
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Explanation:
Detailed explanation-1: -The reserve ratio is the portion of reservable liabilities that commercial banks must hold onto, rather than lend out or invest. This is a requirement determined by the country’s central bank, which in the United States is the Federal Reserve. It is also known as the cash reserve ratio.
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