Definitions
There is 1 meaning of the phrase
Reserve Ratio.
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)
cash reserve ratiorequired reserve ratioExample Sentences
"The central bank reduced the reserve ratio to stimulate lending."
"Banks are required to maintain a certain reserve ratio to ensure financial stability."
"Increasing the reserve ratio is one way to control inflation."
"The reserve ratio can impact the money supply in the economy."
"Lowering the reserve ratio encourages banks to lend more money."
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Words
reservatories
