It protects public deposits.
Reserve requirement
the percentage of a bank's total deposits that must be kept in its possession
reserve ratio
excess reserves
The Purpose of the United States Federal Reserve Board is that of a governing body to oversee and make important decisions to do with the Federal Reserve Bank and the United States' currency and monetary issues.
will discourage aggregate demand.
Increasing the reserve requirement for banks will make less money available to borrowers and thus slow the economy's growth.
Reserve requirement
Less money in the economy.
the percentage of a bank's total deposits that must be kept in its possession
Money Multiplier is inverse of Reserve Requirement. That is, m = 1/R
reserve ratio
Reserve requirement.
excess reserves
excess reserves
19%
Satisfaction.