Every bank is required to hold a certain amount of money on hand.This is called the:

Question

Quizplus · Accepted Answer

The term used to describe the amount of money that a bank is required to hold on hand is the reserve requirement. This is the amount of money that a bank must keep in reserves in order to meet the demands of its depositors and to ensure that it has enough money on hand to cover any unexpected losses. The reserve requirement is set by the central bank of the country in which the bank is located and is usually expressed as a percentage of the bank's total demand deposits.

Every Bank Is Required to Hold a Certain Amount of Money