Asked by Skyler Compo on Jun 18, 2024
Verified
Banks are required to hold reserves against the total value of all their assets.
Required Reserves
The portion of deposits that banks are required to keep on hand and cannot lend out, typically mandated by a central bank.
Total Assets
The sum of all assets owned by an entity, including cash, investments, property, and other valuables, used to assess financial health.
- Grasp the significance of banks in the process of money supply.
Verified Answer
SR
Savanna RomainJun 23, 2024
Final Answer :
False
Explanation :
Banks are required to hold reserves against their deposit liabilities, not against the total value of all their assets.
Learning Objectives
- Grasp the significance of banks in the process of money supply.
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