Friday, March 26, 2010
Friday, March 5, 2010
What is a banks required reserve
Required Reserve - a percentage of all deposits made to a bank that must be kept on hand, in the United States the required reserve is 10%.
A scary thing to note is that the required reserve amount each bank must have is not distributed equally across all of the individual bank's branches. If a run on the banks were to occur and you went to withdraw from your bank, they will not have your cash available for you to take.
A scary thing to note is that the required reserve amount each bank must have is not distributed equally across all of the individual bank's branches. If a run on the banks were to occur and you went to withdraw from your bank, they will not have your cash available for you to take.
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