The reserve requirement (or cash reserve ratio) is a central bank regulation
employed by most, .... However, for the purposes of clarity, the term commercial
banks will be used for the remainder of ...
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 ...
... is 10 percent. If the bank's required and excess reserves are equal, then its
actual reserves: .... 23. The primary purpose of the legal reserve requirement is to
Definition of reserve requirements: Minimum amount of cash or cash-equivalents
(computed as a percentage ... Reserve requirements serve as (1) a safeguard
against a sudden and inordinate demand for ... legal reserves ... primary reserve.
Oct 11, 2010 ... While also contributing to maintaining public confidence in the solvency of the
banks, the primary purpose of such reserve requirements is as a ...
Bank reserves are the currency deposits which are not lent out to the bank's
clients ... Minimum reserve requirements are established by central banks in
order to ...
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
Moreover, the ratio of reserves to deposits exceeded the legal requirement (15
..... takes the position that it is no longer the case that the primary function of legal
the restoration of central banking to its rightful purpose. Superficially, ..... The
imposition of primary legal reserve requirements on banks needs no justification.
the efficacy of the Federal Reserve's primary tool, ... of legal requirements and not
because of the needs ..... purpose of these reserves was to increase the.