Reserve ratio/Definition: Difference between revisions
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The ratio of a bank's reserves to its deposits. | The ratio of a bank's reserves to its deposits, a minimum value of which is set by its [[central bank]] with the effect of limiting the proportion of its deposits that the bank is permitted to lend. | ||
Latest revision as of 08:52, 20 March 2010
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Reserve ratio [r]: The ratio of a bank's reserves to its deposits, a minimum value of which is set by its central bank with the effect of limiting the proportion of its deposits that the bank is permitted to lend.