To make sure they can accommodate withdrawal requests at any time,banks must keep a dollar on reserve in the bank vault for each dollar of deposits.

Name: To make sure they can accommodate withdrawal requests at any time,banks must keep a dollar on reserve in the bank vault for each dollar of deposits.
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Banks are only required to keep a fraction of deposits on reserve, known as the reserve ratio. This fraction is determined by the central bank and can vary depending on economic conditions.

To Make Sure They Can Accommodate Withdrawal Requests at Any