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All depository institutions must a. Charged the interest rates and pay interest rates determined by their...

All depository institutions must

a. Charged the interest rates and pay interest rates determined by their Federal Reserve district bank

b. Keep all of their deposits at the Federal Reserve district bank except their vault cash

c. Keep a certain percentage of the deposits of the Federal Reserve district bank or as vault cash

d. Limit their loans to households to a certain percentage of all their loans, and the limit is set by the Federal open market committee

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Answer #1

Option C

Explanation: All depository institutions must keep a percentage of their deposits as reserves.

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