Examples of 'reserve ratio' in a sentence
Meaning of "reserve ratio"
Reserve ratio refers to the percentage of deposits that banks are required to hold in reserve by law. It is set by central banks as a monetary policy tool to regulate the money supply and control inflation. A higher reserve ratio means that banks have to keep a larger portion of customer deposits, which reduces their ability to lend and can impact economic activity
How to use "reserve ratio" in a sentence
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reserve ratio
Increase in reserve ratio reserves to total delivery.
Liabilities to which a zero reserve ratio is applied.
The reserve ratio applies as follows.
Liabilities to which a positive reserve ratio is applied.
The reserve ratio is progressive and can be modified every quarter.
China announced cuts reserve ratio.
The cash reserve ratio for banks has been kept unchanged at four per cent.
This multiplier is the inverse of the reserve ratio.
So let us do reserve ratio requirement.
The money multiplier formula is the reciprocal of the required reserve ratio.
Last year it lowered the reserve ratio four times.
This reserve ratio is specified in the ECB.
China reduces foreign exchange risk reserve ratio to zero.
This reserve ratio is specified in the ECB Regulation on minimum reserves.
Let us talk a little bit more about reserve ratio requirements.
See also
Altering the reserve ratio either increases or reduces a bank 's capacity to lend.
Liabilities included in the reserve base and to which a zero reserve ratio is applied.
As a counterbalance, the reserve ratio was lifted to curb excess credit growth.
Liabilities included in the reserve base and to which the positive reserve ratio is applied.
A reserve ratio of 1 % shall apply to all other liabilities included in the reserve base.
It has also reduced the required reserve ratio to entice banks to lend more.
In these conditions, it was no longer necessary to maintain a high reserve ratio.
The ECB may change the reserve ratio at any time.
And to answer this question, we will introduce the idea of a reserve ratio.
More specifically, the fixed minimum reserve ratio has not always been applied.
The money multiplier equals 1 divided by the reserve ratio.
But eventually, the reserve ratio stops the money supply growing any further.
I have essentially maxed out what I can do under this type of reserve ratio requirement.
So a liquidity reserve ratio will not limit the banking sector 's total ability to create money.
So let's introduce the concept of a reserve ratio.
This reserve ratio is called a CRR and is user-configured.
Instead, it is divided by the reserve ratio.
When there was a reserve ratio in the UK, it was what 's called a liquidity ratio.
In order to determine an institution'sreserve requirement, the reserve baseis multiplied by a reserve ratio.
Last year, China cut the reserve ratio four times.
In some systems, including the US, the central bank sets a required reserve ratio.
There is no reserve ratio in the UK anymore, and there has not been for a long time.
China more confident after stabilizing yuan, seen cutting reserve ratio soon.
Reserves reserve base × reserve ratio - lump sum allowance.
For example, just last week the People 's Bank of China cut the reserve ratio requirement.
We halved the minimum reserve ratio from 2 per cent to 1 per cent.
The money multiplier is expressed as the equation, 1 / required reserve ratio.
So that 's its reserve ratio.
Although reserve ratios may vary, I am going to use a 10 percent reserve ratio as our example.
China to cut requirement reserve ratio by 1 %.
But in Panama the reserve ratio of independent banks is hovering around 60 %.
But it 's hardly reassuring that this fund has a reserve ratio under 1 %.
The bank also held the cash reserve ratio for commercial banks at 20 percent.
As can beseen from Table 4.2, neither long-termliabilities nor repurchase agreementsare subject to a positive reserve ratio.
K = required reserve ratio.
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