Today, reserve requirements are:

Question

Quizplus · Accepted Answer

Reserve requirements are not a direct tool of monetary policy, as their primary function is to ensure that banks have enough reserves to cover their liabilities, rather than to directly influence the overall level of liquidity in the economy. While reserve requirements can indirectly affect the availability of credit, they are generally seen as a less important tool of monetary policy compared to interest rates and open market operations.

Today, Reserve Requirements Are