question 12 which of the following correctly describes a reserve requirement? the amount of money a bank…

question 12 which of the following correctly describes a reserve requirement? the amount of money a bank must keep in cash or deposit the amount of money charged to take out a short - term loan the amount of collateral needed by a business to secure a loan the amount of money paid to secure a loan through the federal reserve

question 12 which of the following correctly describes a reserve requirement? the amount of money a bank must keep in cash or deposit the amount of money charged to take out a short - term loan the amount of collateral needed by a business to secure a loan the amount of money paid to secure a loan through the federal reserve

Answer

Brief Explanations:

Reserve requirement is the amount a bank must hold in cash or on - deposit as a percentage of its deposits, to ensure liquidity and stability in the banking system. It is not related to loan - taking charges, collateral for loans, or amounts paid to secure loans through the Federal Reserve.

Answer:

The amount of money a bank must keep in cash or deposit