According to the limits set by U.S Congress, the Fed may require a bank which has checkable deposits that is worth more than $125 million to maintain a reserve of <u>8% to 14%</u> of these deposits.
<h3>What is the Federal Reserve System?</h3>
The Federal Reserve System is also referred to as the "Fed" and it was enacted into law by the Federal Reserve Act on the 23rd of December, 1913 by the U.S Congress.
Also, it is important to note that the "Fed" is just like all central banks and as such, it's considered as a United States government agency.
Basically, all the money in the economy of the United States of America is essentially a debt of the Federal Reserve System and all the chartered banks.
According to the limits that were set by U.S Congress, the Federal Reserve System (Fed) may require a bank which has checkable deposits that is worth more than $125 million to maintain a reserve of <u>8% to 14%</u> of these deposits.
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If the European Union put a quota on American jeans only allowing a small portion to be imported the demand for the jeans would rise even though the supply would not follow that. When there is a small limit on something that consumers want, the price usually goes up because they know they will sell the items regardless and in this case that may happen. The price of jeans will rise, the demand will rise, but the supply will not.
Answer:
Money markets are used for short-term lending or borrowing usually the assets are held for one year or less whereas, Capital Markets are used for long-term securities they have a direct or indirect impact on the capital. Capital markets include the equity market and the debt market.
Explanation:
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