Section 2 Flashcards
0
Q
Bank holding company
A
Owns, or has a controlling interest in, more than one bank.
1
Q
Check clearing
A
Is a service offered by the Fed to record receipts and expenditures of bank clients.
2
Q
Bank exam
A
Is an audit of the bank’s financial practices.
3
Q
Required reserve ratio (RRR)
A
Is the fraction of a bank’s deposits that it must keep in reserve.
4
Q
Deposit multiplier formula
A
Tells how much the money supply will increase after an initial cash deposit.
