Asked by Kayla Harrington on Jun 03, 2024
Verified
The reserve requirement for time deposits with original maturities of less than 18 months is _____%.
Reserve Requirement
Central bank regulations that set the minimum amount of reserves that must be held by a commercial bank, not to be loaned out or spent.
Time Deposits
Time Deposits are bank deposits with a fixed term or period of maturity, during which withdrawal entails a penalty, usually offering higher interest rates than savings accounts.
Original Maturities
The initial term agreed upon at the issuance of a financial instrument or loan, before any extensions or roll-overs.
- Attain insight into the mechanisms through which banks function, with an emphasis on reserve requirements.
Verified Answer
Learning Objectives
- Attain insight into the mechanisms through which banks function, with an emphasis on reserve requirements.
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