Question

The name given to the fraction of deposits that a bank is legally required to hold in its vault, or as deposits at the fed, is __________.

Answer 1

The answer to this question is the "REQUIRED RESERVE RATIO", it is the name given to the fraction of deposits that a bank is legally required to hold in its vault or as deposits at the fed. As per law and based on the checking account deposits, there is required reserve that a bank is legally authorized to hold.