The required reserve ratio is the minimum percentage of that are required to hold as reserves.

Deposits , banks

Explanation:

Deposits , banks

The reserve ratio required gives the percentage of deposits banks have to hold as reserves.It is the reserve-to-deposit ratio.If the minimum reserve ratio is 10 percent, this means that as required reserves, banks must retain 10 percent of their deposits. When deposits are $20 million, then as required reserves, $2 million ($20 million x.10) must be kept.

The required reserve ratio is the minimum percentage of deposits that reserves are required to hold as reserves.

Explanation:

A lower reserve ratio condition gives banks more cash to lend, at lower concern rates, which generate acquiring more engaging to customers. Conversely, the Fed raises the stock ratio requirement to decrease the quantity of capitals banks have to lend.

Reasons:

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