Traditionally, the Fed often communicated its intentions to restrict or expand monetary policy by announcing a change in its target for the Multiple Choice discount rate. consumer price index. prime rate. federal funds rate.

Type of deposit reserve requirementcheckable deposits $7.8 - 48.3 million 3%over $48.3 million 10noncheckable personal savings and time deposits 0refer to the accompanying table. if a bank has $60 million in savings deposits and $40 million in checkable deposits, then its required reserves are$1.2 million.