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What are reservation?

Updated: 2/6/2022
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Wiki User

7y ago

Best Answer

When the government gave land to the natives.

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Sonny Borer

Lvl 10
2y ago
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15y ago

A bank is required to reserve a certain amount of money in order to make loans or succeed as a bank.

For instance, the Fed sets a required reserve ration that says a certain percentage of deposits must remain in the cash vault or on deposit with the Fed. This value may be something like 10%, so if a bank has deposits of $50 million and they are required to keep 10% then they would have to keep $5 million in their vaults and they could loan out the remaining $45 million to increase their assets.

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