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QUESTION 4 4. Match the circumstances of the Federal Reserve banknotes to their changing meaning or role When held by the pub
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Question 4
A . medium of exchange - when held by the public
B. reserves- when in the private bank vault
C. Trash -when back at the federal reserve


Question 5
Required Reserves - A. the amount of reserves the private bank is required to hold- determined by multiplying the total checkable account Liabilities by the reserve ratio

Actual reserves- B. The amount of reserves the private bank actually holds
Excess reserves - C. excess of actual reserves over required reserves

Reserve shortfall- D. When a private bank's actual reserves are less than what the bank must have in required reserves

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