Answered: 36. To be considered money, an item…

36. To be considered money, an item must have which of the following features? Choose all that apply. O federal government approved durability paper or metal composition O easily divisible

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter14: Money And Banking

Section: Chapter Questions

Problem 22AA

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Concept explainers

Required Reserve and Excess Reserve Analysis

A required reserve is an amount of cash that banks must keep with themselves, which is certain percentage of the deposits made by their customers. Required reserve is a percentage of the bank's deposits that the respective bank must have on each overnight. The percentage rate is set and determined by the nation’s central bank. It is important to have such funds accumulated to meet its uncertain obligations, sudden liabilities and withdrawals. Required reserve is also known as reserve ratio. Reserve ratio is an important tool to control the money supply.

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36. To be considered money, an item must have which of the following features? Choose all that apply.
O federal government approved
durability
paper or metal composition
O easily divisible

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