The required reserve ratio (RRR) is the portion of a deposit that a bank must keep on hand. It is a regulation set by central banks that mandates banks to hold a certain percentage of their deposits as reserves, either in their vaults or at the central bank, to ensure liquidity and stability in the financial system.
What is the required reserve ratio (RRR)?
the ratio of commercial to personal loans that a bank makes
the amount of money a bank has to loan out
the portion of a deposit that a bank must keep on hand
the deposits that commercial companies make in banks
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