Question

What term refers to the amount of reserves that a commercial bank must keep that is a percentage of the bank's checkable deposit liabilities?

A. Actual reserves
B. Excess reserve ratio
C.Actual reserve ratio
D. Reserve ratio

Answer 1

The term that refers to the amount of reserves that a commercial bank must keep as a percentage of the bank's checkable deposit liabilities is Reserve ratio.

Step-by-step explanation:

The term that refers to the amount of reserves that a commercial bank must keep as a percentage of the bank's checkable deposit liabilities is Reserve ratio.