Required reserves are the portion of deposits banks are required to hold and not lend to customers.

Name: Required reserves are the portion of deposits banks are required to hold and not lend to customers.
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Required reserves are indeed the portion of deposits that banks are mandated by central banking authorities to hold in reserve and are not allowed to lend out to customers. This is to ensure that banks have enough liquidity to meet withdrawal demands.

Required Reserves Are the Portion of Deposits Banks Are Required