Reserve requirements are the
A) minimum percentages of deposits that banks must hold as reserves.
B) 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) rules covering the types of assets that banks may purchase.

Question

Quizplus · Accepted Answer

Reserve requirements are regulations set by central banks that determine the minimum amount of reserves a bank must hold against deposits. This is a tool used to control the money supply and ensure financial stability.

Reserve Requirements Are the