Amount of money and liquid assets that Federal Reserve System member banks must hold in cash or on deposit with the Federal Reserve System, usually a specified percentage of their demand deposits and time deposits. While this is a way of ensuring that the banks always have a sufficient amount of cash for depositors, it is also a way of controlling the money supply. Increasing the reserve requirement will decrease the money supply, and decreasing the reserve ratio will increase the money supply. also called Federal Reserve requirement or reserve ratio.
Related information about Federal Reserve requirement:
- Reserve requirement - Wikipedia, the free encyclopedia
The reserve requirement (or cash reserve ratio) is a central bank regulation that sets the minimum reserves each commercial bank must hold (rather than lend ...
- Reserve Requirements Definition | Investopedia
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 vaults ...
- Reserve Requirement - US Economy - About.com
The Federal Reserve requires that banks in reserve a certain amount of cash on hand each night.
- What is Federal Reserve requirement? definition and meaning
Definition of Federal Reserve requirement: Amount of money and liquid assets that Federal Reserve System member banks must hold in cash or on deposit with ...
- What is Federal Reserve Requirement? - Investor Glossary
What is Federal Reserve Requirement? Find out right now with a helpful definition and links related to Federal Reserve Requirement.
- Reserve Requirements: A Modern Perspective - Federal Reserve ...
41. Federal Reserve Bank of Atlanta E C O N O M I C R E V I E W Fourth Quarter 2002. The Federal Reserve requires depository institutions to hold a minimum ...
- 12 CFR 204.2 - FDIC
Jun 29, 2012 ... AUTHORITY: 12 U.S.C. 248(a), 248(c), 371a, 461, 601, 611, and 3105. SOURCE : The provisions of this Part 204 appear at 45 Fed. Reg. 56009 ...
- 12 CFR 204.4 - Computation of required reserves. | LII / Legal ...
(a) In determining the reserve requirement under this part, the amount of cash items in process of collection and balances subject to immediate withdrawal due ...