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Just in case something happens the bank can pay off their customers.

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13y ago

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Related Questions

What requirements banks must meet under a fractional reserve banking system?

banks must keep a specific percentage of deposits on hand.


WhIch terms to the percentage of the banks total deposit that it must keep in its own vaults?

It is the reserve requierment


What accurately describe the requirements banks must meet under a fraction reserve banking system?

Banks must keep a specific percentage of deposits on hand.A banking system in which banks keep a portion of deposits on hand to satisfy their customer's demands for withdrawals.


What describes the requirements banks must meet under a fractional reserve banking system?

banking system in which banks keep a portion of deposits on hand to satisfy their customer's demands for withdrawals.


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.


What is fractional reserve banking?

Fractional-reserve banking is what keeps the banks running. They must keep a certain amount of money in reserve (usually in the form of a deposit with the central bank), so that people can withdrawal their deposits.


What banks must join the federal reserve system?

all nationally chartered banks.


Why did the Members banks must leave this with the Fed?

Reserve requirement


What is a reserve rate?

The amount of funds that banks must hold in reserves


Which term refers to the percentage of a banks total deposit that it must keep in its own vaults?

The term that refers to the percentage of a bank's total deposits that it must keep in its own vaults is called the "reserve requirement." This regulation is set by a country's central bank and is intended to ensure that banks maintain sufficient liquidity to meet depositor demands. By controlling reserve requirements, central banks can influence the amount of money available for lending and overall economic activity.


What term indicates the percentage of a banks total deposit that must be kept in its own vaults?

reserve ratio


What term indicates the percentage of banks total deposit that must be kept in its own vaults?

reserve ratio