Browse:  #  A  B  C  D  E  F  G  H  I  J  K  L  M  N  O  P  Q  R  S  T  U  V  W  X  Y  Z 

Required Reserve Rate

Required Reserve Rate Definition

The required percentage of reserves that each Commercial bank has to maintain. The rate is specified by the Board of Governors of the FED. The reserve rate may be used as a tool in the monetary policy, influencing the country's economy. Changes in the reserve rate modify the credit conditions: an increase means less money available for lending. This causes a rise in interest rates.







Ask a Question

Learn the famous formula for money-making, based upon the THIRTEEN PROVEN STEPS TO RICHES! Get your FREE Copy & Instant Access to Think and Grow Rich by Napoleon Hill just by signing up.
 
   
Newsletter cover
Browse:  #  A  B  C  D  E  F  G  H  I  J  K  L  M  N  O  P  Q  R  S  T  U  V  W  X  Y  Z