The percentage of deposits that a bank must hold as reserves by law is known as

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Required reserves are the percentage of deposits that a bank is required by law to hold in reserve. Total reserves refer to the amount of money a bank has in reserve, including both required and excess reserves. Excess reserves are any reserves held by a bank above and beyond the required amount. The money multiplier is a concept that explains how a change in reserves can lead to a larger change in the money supply through the process of lending.

The Percentage of Deposits That a Bank Must Hold as Reserves