Definitions
There is 1 meaning of the phrase
Cash Reserve Ratio.
Cash Reserve Ratio - as a noun
A percentage of the bank's total deposits, kept to ensure that the bank is able to pay an unusually high number of withdrawals on demand accounts should that event occur.
Example: "The required reserve ratio is sometimes used as a tool in monetary policy, influencing the country's borrowing and interest rates by changing the amount of funds available for banks to make loans with."
Synonyms (Exact Relations)
required reserve ratioreserve ratioExample Sentences
"The central bank increased the cash reserve ratio to control inflation."
"Banks are required to maintain a certain percentage as the cash reserve ratio."
"The government reduced the cash reserve ratio to stimulate economic growth."
"The cash reserve ratio determines the amount of cash banks must hold in reserve."
"Banks were penalized for not maintaining the mandated cash reserve ratio."
