In addition to being subject to the Fed's reserve requirements,the banks are also required to maintain a capital requirement,which is

Question

Quizplus · Accepted Answer

The capital requirement is the minimum amount of equity that a bank must hold in relation to its total assets. It is expressed as a ratio of equity to assets, typically around 8%. This serves as a buffer to protect depositors and the banking system from losses.

In Addition to Being Subject to the Fed's Reserve Requirements,the