reserve ratio Definition

reserve ratio

Definition

Amount of money and liquid assets that Federal Reserve System member banks must hold in cash or on deposit with the Federal Reserve System, usually a specified percentage of their demand deposits and time deposits. also called Federal Reserve requirement or reserve requirement.

Reproduction of all or part of this glossary and/or this page, in any format, without written consent is prohibited. If you have questions about this dictionary please feel free to contact us feedback\@\investorguide.com

Related Terms

required reserves -

Popular 'Banking' Terms

negotiable
letter of credit
bank draft
bank
commercial bank

account
overdraft protection
compound interest
overdraft
lockbox

reserve ratio in the news

Tools

Enter your email address to get our free Term of the Day newsletter!

reserve ratio is ...

... part of the Banking subject.

Nearby Terms

research and development
research department
reseller
reservation
reserve
reserve ratio
reserve requirement
reset bonds
reset frequency
residential energy credit
residential mortgage

Search volume for reserve ratio

Review the unprecedented moves the Fed & Treasury took to bring the financial markets back from the precipice