How does the Federal Reserve decide bank reserve requirements in practice?

Asked Apr 9, 2013· 1 answer ·United States

Faisal KhanAnswered Apr 9, 2013

The reserve requirement is determined by the U.S. Federal Reserve based on the total liability based on the deposit in the financial instutition.

Reserve Requirements: http://www.federalreserve.gov/mo...
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Central Bank Policy Central Banks Banking Economics Reserve Accounts United States

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