2. The portion of deposits that banks must keep on hand for day-to-day operations and other purposes is called the: loan-to-assets ratio. inflation protection. reserve requirement. banks' profit margins.
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Step 1: The portion of deposits that banks must keep on hand for day-to-day operations and other purposes is known as the reserve requirement. Show more…
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The actual reason that banks must hold required reserves is: a. To enhance liquidity and deter bank runs. b. To help fund the Federal Deposit Insurance Corporation, which insures bank deposits. c. To give the Fed control over the lending ability of commercial banks. d. To help increase the number of bank loans.
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