Banking: Understanding Reserve Ratios

Reserve requirements are the amount of funds that a bank must hold in reserve against specified deposit liabilities.

The dollar amount of a depository institution’s reserve requirement is determined by applying the reserve ratios specified by the central bank of a country. This is also referred to as the “cash reserve ratio” (CRR).

The reserve ratio affects the money supply in a country.

This video explains the concept of reserve ratio and how reserve requirements limit how much lending a bank can do.

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Data Science in Finance: 9-Book Bundle

Data Science in Finance Book Bundle

Master R and Python for financial data science with our comprehensive bundle of 9 ebooks.

What's Included:

  • Getting Started with R
  • R Programming for Data Science
  • Data Visualization with R
  • Financial Time Series Analysis with R
  • Quantitative Trading Strategies with R
  • Derivatives with R
  • Credit Risk Modelling With R
  • Python for Data Science
  • Machine Learning in Finance using Python

Each book comes with PDFs, detailed explanations, step-by-step instructions, data files, and complete downloadable R code for all examples.