Reserve requirements are
A) rules covering the types of assets that banks may purchase.
B) the minimum amount of an owner's financial resources that must be placed in a depository institution.
C) rules covering the types of deposits that banks may offer.
D) minimum percentages of deposits that banks must hold as reserves.

Question

Quizplus · Accepted Answer

Reserve requirements refer to the minimum percentages of deposits that banks are required to hold as reserves. This is done to ensure that banks have enough liquid assets on hand to meet withdrawal requests from customers.

Reserve Requirements Are