Banks are legally required to hold a percentage of all deposits as reserves.

Name: Banks are legally required to hold a percentage of all deposits as reserves.
Brand: Quizplus
Rating: 4.9 (46 reviews)

Question

Quizplus · Accepted Answer

Banks are required to hold a percentage of all deposits as reserves to ensure they have enough funds to meet withdrawal demands and maintain stability in the financial system. This requirement is set by the central bank or regulatory authority in each country.

Banks Are Legally Required to Hold a Percentage of All