Reserve requirement

From CNM Wiki
Revision as of 19:56, 2 June 2020 by Kevmwangi (talk | contribs) (Created page with "Reserve requirement is the proportion of its deposits that a bank is legally required to deposit with the central bank. ==Definition== According to Principles of Econom...")
(diff) ← Older revision | Latest revision (diff) | Newer revision → (diff)
Jump to: navigation, search

Reserve requirement is the proportion of its deposits that a bank is legally required to deposit with the central bank.

Definition

According to Principles of Economics by Timothy Taylor (3rd edition),

Reserve requirement. The proportion of its deposits that a bank is legally required to deposit with the central bank.