reserve

economics

Learn about this topic in these articles:

banking

  • U.S. Federal Reserve Board Building
    In central bank

    …within limits, the minimum cash reserves that banks must hold against their deposit liabilities. In some countries the reserve requirements against deposits provide for the inclusion of certain assets in addition to cash. Generally, the purpose of such inclusion is to encourage or require banks to invest in those assets…

    Read More

fiscal and monetary policy

money markets

  • In money market: Central banks

    …potential volume of commercial bank reserves is enlarged. With more reserves, the commercial banks can make additional loans or investments, paying for them by entering credits to depositors’ accounts on their books. And in that way the money supply is increased. It may be reduced by reversing the sequence. The…

    Read More

owner’s equity