Since banks are required to keep only a fraction of total deposits as bank reserves,the reserve ratio is always greater than one.

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The reserve ratio is the fraction of total deposits that banks are required to keep as reserves. It is expressed as a percentage or can also be a fraction, but it is always less than or equal to one. For example, if the reserve ratio is 10%, then banks are required to keep 10 cents for every dollar deposited with them. Therefore, the reserve ratio can never be greater than one.

Since Banks Are Required to Keep Only a Fraction of Total