The meaning of money - bank regulation - reserve ratios
3 important questions on The meaning of money - bank regulation - reserve ratios
What is the banks' argument about reserve requirements?
What is the set of rules that the banks had to maintain a higher reserve ratio than they might have held otherwise. Who makes those rules?
- Reserve requirements
- made by the government
Although banks don't have to hold reserve requirements, they still do so by choice, what is the term to describe this? What is the ideal interest rate?
a low reserve ratio
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