required reserves

Definition

The amounts that banks are required to keep on deposit at a Federal Reserve Bank, as determined by reserve ratios.

Use required reserves in a sentence

There was plenty of required reserves there and well were very fortunate to have all of it available to us.

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There can never be a shortage of required reserves because the Federal Reserve system supplies reserves on demand and at a stipulated price.

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He was dismayed to find out that his bank was dangerously close to exhausting the required reserves and that it may need to go under as the last option.

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