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 ...
The primary purpose ofthe legal reserve requirement is to: “The. Fed's m3 o-
Pconi'mlijnj. A) prevent banks from hoardingtoo much vault cash. moneﬂ Sup p.
... 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
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.
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
The minimum amount of cash required to operate a bank. Primary reserves also
include the legal reserves that are housed in a Federal Reserve or other ...
Requirements regarding the amount of funds that banks must hold in reserve
against deposits made by their customers. This money must be in the bank's
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 ...
through reserve requirements, a minimum ratio of liquid assets relative to ...... the
primary function of legal reserve requirements is to assure or preserve the ...