The ratio of actual reserves to total deposits at the Fed and vault cash is called

A) a certificate of deposit.
B) the gold reserve.
C) fractional reserve banking.
D) the fractional reserve ratio.

Fractional Reserve Banking

A system in which depository institutions held reserves that are less than the amount of total deposits.

Actual Reserves

The amount of funds that a bank has on hand and in reserve accounts, which can be used to meet any withdrawal or payment demands.

Vault Cash

The physical currency a bank holds in its vault as part of its required reserves or for daily operations.