The reserve requirement (or cash reserve ratio) is a central bank regulation
employed by most, but not all, of the world's central banks, that sets the minimum
faculty.fiu.edu/~dacalr/ECO3041 - Ch 13 Review Qs.doc
The primary purpose of the legal reserve requirement is to: A) prevent banks from
hoarding too much vault cash. B) provide a means by which the monetary ...
Assuming a legal reserve ratio of 20 percent, how much excess reserves would
this bank have .... 23. The primary purpose of the legal reserve requirement is to:
D. Assets plus reserves equal net worth 5. The primary purpose of the legal
reserve requirement is to: A. prevent banks from hoarding too much vault cash.
The main purpose of a reserve requirement is to control growth in the money
supply. Federal reserve uses reserve requirement as a tool to control liquidity in
May 13, 2015 ... Board of Governors of the Federal Reserve. The Federal ... The primary purpose
of the legal reserve requirement is to: provide a means by ...
Definition of reserve requirements: Minimum amount of cash or cash-equivalents
(computed as a percentage of deposits) that banks and other depository ...
Jan 24, 2013 ... away from reserve requirements in favor of a central bank able to add liquidity to
the .... for the purpose of calculating reserves. .... requirement and that the buffer
could then be used: “A legal minimum of 20 per cent. .... primary mechanisms for
provide liquidity during the panics: using the reserve and.
Primary changes in bank deposits come about most often as the re- sult of a ....
also serve the purpose of limiting the expansion of bank credit and the money
supply. .... A firm customary reserve ratio or a legal reserve requirement provides
Set by the Fed's board of governors, reserve requirements are one of the three
main tools of monetary policy. The other two tools are open market operations ...