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earnstyle [38]
2 years ago
7

Required reserves of banks are a fixed percentage of their.

Business
1 answer:
mylen [45]2 years ago
5 0

Required reserves of banks are a fixed percentage of their fixed deposits.

<h3>What are required reserves?</h3>

Required reserves is the percentage of deposits required of banks to keep as reserves by the central bank. Required reserves are used to control the amount of loans a bank can give out. This in turn affects the money supply in the economy.

Reserves are also needed to meet unforeseen circumstances.

To learn more about required reserves, please check: brainly.com/question/12417681

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