reserve requirement Definition

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.

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reserve requirement is ...
... part of the Banking subject.

Related Terms

borrowed reserves -

excess reserves -

Federal funds - More

fed funds

reserve requirement appears in the definitions of these other terms on BusinessDictionary.com

legal reserves, primary reserves, reserves requirement, total reserves, available expenditure, and