Questions tagged [reserve-requirement-ratio]
The reserve-requirement-ratio tag has no usage guidance.
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Reserve ratio from H.8 report
Reserve ratio definition
Macroeconomic textbooks define reserve ratio as reserves / deposits.
So for example, the following bank:
has a reserve ratio of ...
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I've asked chatGPT to explain pairwise relationships between economic variables [closed]
I asked chatGPT something, but I know its answers aren't always accurate. Please tell me if its answer is flawed in any way. And if you can give a better answer, please do so.
Please explain to me ...
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How is commercial bank reserve requirement enforced
More specifically:
What can be accounted as reserve (apart from actual reserve balance at a regional central bank) ?
how/where do banks file their reserve amount?
who verifies whether this informed ...
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Reserve Requirements for Banks
Does the reserve requirements for US depository instiutions require a multi branch institution as a whole be compliant, or each individual branch of that institution be compliant? For example imagine ...
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Why do reserves increase when the Fed buys bonds? (Introduction to Macroeconomics)
A question asks, "If the federal funds rate were above the rate the Fed had targeted, the fed could move the rate back towards its target by _" and then the options are buying/selling bonds, ...
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Bank Reserve ratio
It's known that the money multiplier is 7 and the ratio of cash held by the public to their deposits is 1 to 20. Which of the following must be the bank's reserve ratio?
My attempt,
Money multiplier=1/...
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Can the money multiplier happen within a single bank / a single loan?
Many tutorials explain the money multiplier effect by involving a chain of banks (e.g. khan academy)
So if reserve requirements are 10% and bank A owns 1000€ reserves, bank A can lend 900€ to bank B; ...
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Can setting bank's reserve requirement ratio in 100% simulate gold standard?
Statement:
If you want a gold standard, it's easier to set bank's reserve requirement to 100%.
Context:
This was a comment in a video telling how government actions influence monetary inflation.
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Allowing the reserve requirements drop to zero
On 15 March 2020, the Federal Reserves announced that it would cut its benchmark rate to near zero and that it would also reduce the reserve requirements ratio to zero percent. This is part of its ...
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Why do banks keep vault cash instead of depositing all reserves at the central bank?
In what way to commercial banks benefit from keeping some of their excess reserves in the vault as opposed to depositing all of their excess reserves with the central bank (assuming the central bank ...
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How does the Federal Reserve reduce "excess reserves"?
Over the last few years, the amount of currency is circulation (and the corresponding liability on the Fed's balance sheet) has been growing; however, the asset side of the BS hasn't increased. By ...
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Can a bank have deposits at another bank?
Can a bank create an account at another bank and get a loan in the form of deposits at that bank? If so, could these deposits at the other bank be used to satisfy the first bank's reserve/liquidity ...
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Why does the Fed not fiddle with the reserve ratio?
We often hear in the news of the Fed changing the interest rate. Why do they not commonly alter the reserve ratio?
Won't either be capable of expanding or contracting the money supply?
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What physically happens when foreign currency reserves change?
Assume that the United States decided to hold more yuan in the federal reserve. Which processes does that involve? I assume there is some sort of electronic exchange between the two central banks ...
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