Banks are required by the Fed to hold reserves equal to a part of their deposits as part of the fractional reserve system of the U.S. banking system.

Name: Banks are required by the Fed to hold reserves equal to a part of their deposits as part of the fractional reserve system of the U.S. banking system.
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Banks are required to hold reserves as a part of the fractional reserve system, as mandated by the Federal Reserve.

Banks Are Required by the Fed to Hold Reserves Equal