Question

The Federal Reserve sets the reserve requirement, which banks must meet through deposits at the Fed and cash held at the bank. What do these requirements achieve? Check all that apply. They help to control the money supply. They help to prevent bank runs by reassuring the public that banks will not make too many loans and run out of cash. They mean that banks must have one dollar of deposits for every dollar it loans. They help to facilitate transfers of funds between banks when a customer from one bank writes a check to a customer of another.

Answer 1

Answer:

The correct answer to the following question will be Option B.

Explanation:

• These conditions hopefully reduce banking crises as well as quantify the community against banks never running cash. The criteria for the reservation were established to be doing the ends of the next day.
• Amount of inter-bank payments, these funds also convince the public which banks aren't going to make many such mortgages.

Other available options have no connection with the particular circumstance. So the answer to the above seems to be the right one.