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Why are saving accounts not subject to the fed reserve requirements?
savings accounts are not subject to the Fed's reserve requirements because savings accounts are not as liquid as checking accounts.
In reference to federal reserve policy what are reserve requirements?
the percentage of a bank's total deposits that must be kept in its possession
Who is directly responsible for setting reserve requirements?
Board of Governors
Purpose of the legal reserve?
The legal reserve is designated as the set amount of federal deposits utilized as safe and secure assets created to meet liquidity requirements for the U.S. Federal Bank.
What banks are subject to reserve requirements?
In the U.S., all banks which are insured by the FDIC are subject to those requirements. All other banks can do whatever they want, but most consider these banks shady.
What is the formula for actual reserve?
excess reserve plus the reserve requirements
The of the Federal Reserve has the power to raise or lower the reserve requirements of member banks?
board of government
Why are saving accounts not subject to the fed reserve requirements?
savings accounts are not subject to the Fed's reserve requirements because savings accounts are not as liquid as checking accounts.
What is the purpose of reserve requirements?
It protects public deposits.
The president of the Federal Reserve has the power to raise or lower the reserve requirements of member banks?
no the board of governors
In reference to federal reserve policy what are reserve requirements?
the percentage of a bank's total deposits that must be kept in its possession
In What reference to Federal Reserve policy what are reserve requirements?
the percentage of a bank's total deposits that must be kept in its possession
What are reserve requirements In reference to Federal Reserve policy?
the percentage of a bank's total deposits that must be kept in its possession
Who is directly responsible for setting reserve requirements?
Board of Governors
What is the structure of reserve requirements?
As of October 2005, the structure of reserve requirements was 0 percent for all checkable deposits up to $7 million (the exemption), 3 percent for such deposits from above $7 million to $47.6 million (the low-reserve tranche),
Amount of money the Fed needs to have as a balance in possession?
reserve requirements
True or False Currently only member banks of the Federal Reserve System must meet reserve requirements?
False, before 1980 it was the case but today the new legislation requires all commercial banks to be members of the federal reserve system. All depository institutions became subject to the same requirements to keep deposits at the Federal Reserve. Members or not members are now on equal footing in ters of reserve requirement. I hope that helps Sara
