Demand deposits multiplied by the required reserve ratio equal the amount of reserves

A) the Federal Reserve is required to hold.
B) business firms are required to hold.
C) a bank is required to hold.
D) foreign investors are required to holD.

Required Reserve Ratio

The fraction of deposits that regulators require a bank to hold in reserve and not lend out.

Reserves

Funds or material set aside or saved for future use, often used in the context of central banking as currency holdings or commodities like gold.