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?

They say that the reserve requirements put them in an unfair disadvantage because their competitors like other foreign banks, and canadian non financial  institutions, were not subject to

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?

Desires (or voluntary) reserve ratio
a low reserve ratio

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