Question
How does the Federal Reserve utilize reserve requirements?(1 point)
Responses
Reserve requirements are set by the Fed to balance the nation’s budget.
Reserve requirements are set by the Fed to balance the nation’s budget.
Reserve requirements are set by the Fed to regulate the minimum amount that a commercial bank must hold in liquid assets.
Reserve requirements are set by the Fed to regulate the minimum amount that a commercial bank must hold in liquid assets.
Reserve requirements are set by the Fed to regulate retirement portfolios for federal workers.
Reserve requirements are set by the Fed to regulate retirement portfolios for federal workers.
Reserve requirements are set by the Fed to encourage saving and investing by consumers and businesses.
Responses
Reserve requirements are set by the Fed to balance the nation’s budget.
Reserve requirements are set by the Fed to balance the nation’s budget.
Reserve requirements are set by the Fed to regulate the minimum amount that a commercial bank must hold in liquid assets.
Reserve requirements are set by the Fed to regulate the minimum amount that a commercial bank must hold in liquid assets.
Reserve requirements are set by the Fed to regulate retirement portfolios for federal workers.
Reserve requirements are set by the Fed to regulate retirement portfolios for federal workers.
Reserve requirements are set by the Fed to encourage saving and investing by consumers and businesses.
Answers
GPT-4o mini
The correct response is:
**Reserve requirements are set by the Fed to regulate the minimum amount that a commercial bank must hold in liquid assets.**
This means that banks are required to hold a certain percentage of their deposits in reserve, which helps ensure liquidity and stability in the banking system.
**Reserve requirements are set by the Fed to regulate the minimum amount that a commercial bank must hold in liquid assets.**
This means that banks are required to hold a certain percentage of their deposits in reserve, which helps ensure liquidity and stability in the banking system.