reserve requirement

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 and reserve ratio.

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

borrowed reserves -

excess reserves -

Federal funds - More

fed funds

Related Terms on BusinessDictionary

available expenditure
cheap money
Federal Reserve System (The Fed)
legal reserves
primary reserves
reserves requirement
total reserves

monetary base
required reserves
deposit multiplier
tight monetary policy
monetary policy
interest rate

Popular 'Banking' Terms

negotiable
letter of credit
bank draft
bank
commercial bank

account
overdraft protection
compound interest
overdraft
lockbox

reserve requirement in the news

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

Tools

reserve requirement is ...

... part of the Banking subject.

Nearby Terms

research department
reseller
reservation
reserve
reserve ratio
reserve requirement
reset bonds
reset frequency
residential energy credit
residential mortgage
Residential Mortgage-Backed Security