Question

What is the Reserve Deposit Ration (

Answer 1

Reserve Ratio, it is the percentage of deposits which commercial banks are required to keep as cash according to the directions of the central bank. ... When the central bank wants to increase money supply in the economy, it lowers the reserve ratio.

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Answer 2

Answer:

Reserve deposit ratio is minimum amount of reserves that a bank should hold at a given time. It is normally set as a percentage at which the ratio has to be maintained.

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