Asked by
Jilda Rukhaia
on Nov 11, 2024
Verified
If you know the required reserve ratio,then you know how much each bank is holding in reserves.
Required Reserve Ratio
The fraction of deposits that banks must hold in reserve, either in their vaults or with the central bank, to ensure bank liquidity.
- Become acquainted with the part played by banks in the money issuance process.
- Comprehend the variance between excess reserves, required reserves, and total reserves.
Verified Answer
DB
Learning Objectives
- Become acquainted with the part played by banks in the money issuance process.
- Comprehend the variance between excess reserves, required reserves, and total reserves.