Required reserve ratios are the minimum amount of
A)deposits any one bank is allowed to accept as percentage of its capital.
B)reserves any one bank must hold as a percentage of its loans.
C)reserves any one bank must hold as a percentage of its deposits.
D)deposits any one bank must hold as a percentage of its reserves.
E)reserves any one bank must hold as a percentage of its total assets.

Question

Quizplus · Accepted Answer

Required reserve ratios are the minimum amount of reserves any one bank must hold as a percentage of its deposits. This is to ensure that banks maintain a certain level of liquidity to meet withdrawal demands by their depositors.

Required Reserve Ratios Are the Minimum Amount of