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What is the most liquid asset
Cash
Where are reserves kept if not held in bank vaults?
The Federal Reserve
What do banks use to fund their loans and investments
Deposits
How do banks pay back consumers who have deposits
Interest
What insurance is used to guarantee you can get some money back in case a bank fails?
Deposit Insurance
What is the name for the percentage of deposits that must be held in reserve that is mandated by the US government
Required Reserve Ratio
T Accounts show assets and ____
Liabilities
What is it called when fear and expectations make people rush to withdraw their deposits
A bank run
What are reserves that are more/extra than the required amount
Excess Reserves
What is the Least Liquid Asset
Real Estate/ Land
What is the name for the role of a bank
Financial Intermediary
Pustizzler Bank has $1000 in liabilities. It has 0 in excess reserves and $750 in loans. What is the reserve ratio (%)
25%