The fraction of its reposits that banks keep in the form of reserves as required by law is/are called:

Name: The fraction of its reposits that banks keep in the form of reserves as required by law is/are called:
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Required reserves are the amount of deposits that banks are required to keep in reserve as per the legal requirement. This reserve requirement is set by the central bank, and banks are required to maintain these reserves to ensure their solvency and to prevent bank failures.

The Fraction of Its Reposits That Banks Keep in the Form