Explore IDNLearn.com's extensive Q&A database and find the answers you're looking for. Join our interactive community and get comprehensive, reliable answers to all your questions.
Sagot :
By law, all commercial banks and thrift institutions that provide checkable deposits are required to keep an amount of fund equal to a specified percentage of the bank.
Many central banks have historically required banks under their purview to keep 10% of the deposit, referred to as reserves. this requirement is set in the u.s. by the federal reserve and is one of the central bank's tools to implement monetary policy.
Commercial banks can lend many times their collective excess reserves. a single bank can lend less than its excess reserves.
A reserve is the amount of money a bank keeps in its vaults and accounts for a portion of all deposits made. In most countries, banks are heavily regulated and must keep a minimum percentage of all deposits in case someone wants to withdraw money. this minimum percentage is a preliminary requirement.
Learn more about commercial banks here https://brainly.com/question/1238952
#SPJ1
Thank you for joining our conversation. Don't hesitate to return anytime to find answers to your questions. Let's continue sharing knowledge and experiences! IDNLearn.com is your reliable source for accurate answers. Thank you for visiting, and we hope to assist you again.
