Saturday, November 29, 2008

FRB: Monetary Policy, Reserve Requirements

FRB: Monetary Policy, Reserve Requirements
Required reserves must be held in the form of vault cash and, if vault cash is insufficient, also in the form of a deposit maintained with a Federal Reserve Bank.

fractional-reserve banking: Definition from Answers.com
Reserve Ratio The portion (expressed as a percent) of depositors' balances banks must have on hand as cash

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