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- The reserve ratio is the portion of reservable liabilities that commercial banks must hold onto, rather than lend out or invest. This is a requirement determined by the country's central bank, which in the United States is the Federal Reserve.www.investopedia.com/terms/r/reserveratio.asp
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WEBMar 13, 2023 · Reserve requirements are the percentage of deposits that banks must keep as cash or at the Fed. They are a tool of monetary policy that affect the money supply and interest rates. Learn how they …
WEBMar 9, 2024 · Historically, the reserve ratio has ranged from zero to 10% of bank deposits. Bank reserves are the minimal amounts of cash that banks are required to keep on hand in case of unexpected demand....
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