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the percentage of a bank's total deposits that must be kept in its possession

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Karelle Grady

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3y ago

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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


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


What are the reserve requirements in reference to the federal reserve policy?

Reserve requirements refer to the amount of funds that banks must hold in reserve against deposits made by customers, as mandated by the Federal Reserve. This policy aims to ensure that banks maintain sufficient liquidity to meet customer withdrawals and promote stability in the banking system. The Federal Reserve can adjust these requirements to influence the money supply and overall economic activity. Lowering reserve requirements can encourage lending and spending, while increasing them can help curb inflation.


The of the Federal Reserve has the power to raise or lower the reserve requirements of member banks?

board of government


Which of the following factors does not reduce the Federal Reserve's control of the money supply?

The factor that does not reduce the Federal Reserve's control of the money supply is the ability to set reserve requirements for banks.


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 requirement?

the percentage of a bank's total deposits that must be kept in its possession


How does the Federal Reserve use which of the following to regulate the nation's money supply?

The Federal Reserve uses tools like open market operations, reserve requirements, and the discount rate to regulate the nation's money supply.


What actions could the Federal Reserve take to decrease the money supply?

The Federal Reserve could decrease the money supply by raising interest rates, selling government securities, or increasing reserve requirements for banks.


What government agency conducts monetary policy in the United States?

The Federal Reserve is responsible for managing the money supply in the U.S.


What was the singular achievement of the Federal Reserve Act?

Establishing the Federal Reserve was the singular achievement of the Federal Reserve Act.


When was the federal reserve established?

The Federal Reserve was created in 1913