Just in case something happens the bank can pay off their customers.
banks must keep a specific percentage of deposits on hand.
banking system in which banks keep a portion of deposits on hand to satisfy their customer's demands for withdrawals.
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.
all nationally chartered banks.
The amount of funds that banks must hold in reserves
banks must keep a specific percentage of deposits on hand.
It is the reserve requierment
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.
banking system in which banks keep a portion of deposits on hand to satisfy their customer's demands for withdrawals.
Banks must keep a specific percentage of deposits on hand. Apex Economics.
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.
all nationally chartered banks.
Reserve requirement
The amount of funds that banks must hold in reserves
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.
reserve ratio
reserve ratio