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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.
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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.
What statement accurately describes the requirements banks must meet under a fractional reserve banking system?
Banks must keep a specific percentage of deposits on hand. Apex Economics.
How many directors are on the board for each of the 12 federal reserve banks?
Each of the 12 Reserve Banks is subject to the supervision of a ninemember board of directors (board). Six of the directors are elected by the member banks of the respective Federal Reserve District (District), and three of the directors are appointed by the Board of Governors. Most Reserve Banks have at least one Branch, and each Branch has its own board of directors. A majority of the directors on a Branch board are appointed by the Reserve Bank, and the remaining Branch directors are appointed by the Board of Governors.
Commercial banks and their relationship with the reserve bank?
we take/borrow money from the commercial banks and the commercial banks take/borrow money from the reserve bank
Who do banks answer to - who regulates them?
The Federal Reserve regulates banks and the banking system.
The of the Federal Reserve has the power to raise or lower the reserve requirements of member banks?
board of government
The president of the Federal Reserve has the power to raise or lower the reserve requirements of member banks?
no the board of governors
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
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 would most likely happen if the federal reserve decided to increase the reserve requirements in banks?
If the Federal Reserve decided to increase the reserve requirement in banks, it is likely that banks would be targeted more often for robbery. This would be because there would be more money in every federally-insured bank.
What requirements banks must meet under a fractional reserve banking system?
banks must keep a specific percentage of deposits on hand.
Occasionally banks cannot meet their reserve requirements if customers deposit large amounts of money?
false
Why does the Federal Reserve require commercial banks to have reserves?
To ensure that banks maintain a minimum amount of cash to meet the cash withdrawal requirements of its customers
Who has the power to determine what the margin requirement will be for the member banks?
Usually the Central Banks of each country decide such margin requirements. Ratios like Cash Reserve Ratio, Liquidity Ratio etc are set by the Central Banks like Reserve Bank of India or Federal Reserve of USA. All member banks are expected and supposed to follow these guidelines set by the central banks.
What does the board of governors do within the fed?
The Fed can use three tools to carry out its monetary policy goals: the discount rate, reserve requirements and open market operations. All three affect the amount of funds in the banking system. The discount rate is the interest rate Reserve banks charge banks for short-term loans. Discount rate changes are made by Reserve banks and the Board of Governors. Reserve requirements are the portions of deposits that banks must hold in reserve, either in their vaults or on deposit at a Reserve bank. The Board of Governors has sole authority over changes to reserve requirements. By far, the most frequently used tool is open market operations, which involve the buying and selling of U.S. government securities. As we learned earlier, this tool is directed by the FOMC and carried out by the Federal Reserve Bank of New York. We'll have to get technical to explain how this works.
What has the author Geoffrey M B Tootell written?
Geoffrey M. B. Tootell has written: 'Back to the future' -- subject(s): Monetary policy, Taxation 'Reserve banks, the discount rate recommendation, and FOMC policy' -- subject(s): Banks and banking, Central, Central Banks and banking, Discount, Federal Reserve banks
What has the author A Jerome Clifford written?
A. Jerome Clifford has written: 'The independence of the Federal Reserve System' -- subject(s): Federal Reserve banks
