A bank's required reserves are the fraction of deposits they are required by law to hold as reserves.

Name: A bank's required reserves are the fraction of deposits they are required by law to hold as reserves.
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This statement is true. Banks are required by law to hold a certain percentage of their deposits as reserves, known as required reserves. This is a tool used by central banks to regulate the money supply and maintain the stability of the financial system.

A Bank's Required Reserves Are the Fraction of Deposits They