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Total Reserves

 
Banking Dictionary: Total Reserves

Sum of the deposits that depository institutions may count toward their legal Reserve Requirements. Included in the calculation are reserve account balances on deposit with a reserve bank during the most recent week, currency and coin in a bank's vault, including cash in transit to or from reserve banks. The Monetary Control Act requires most depository institutions to keep reserve balances either directly or indirectly with the Federal Reserve.

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Banking Dictionary. Dictionary of Banking Terms. Copyright © 2006 by Barron's Educational Series, Inc. All rights reserved.  Read more