Rate of deposits to the Federal Reserve or liquid cash that a given bank must maintain as required by the Federal Reserve. The Federal Reserve uses this rate to evaluate current credit conditions and may change key interest rates depending on the required reserve rate.
Related information about required reserve rate:
- What is required reserve rate? definition and meaning
Definition of required reserve rate: Rate of deposits to the Federal Reserve or liquid cash that a given bank must maintain as required by the Federal Reserve.
- Required Reserve Rate: Definition from Answers.com
factor used to determine the amount of reserves a bank must maintain on its deposits. Previous: Required Rate of Return.
- Required Reserve Rate - Financial Dictionary - The Free Dictionary
Specified percentages of deposits, established by the Federal Reserve Board, that banks must keep in a noninterest-bearing account at one of the twelve ...
- Required Reserves and Illiquidity in the Economy - Policy Cafe Serbia
required reserve - specifically the reduction of the required reserve rate ... a very high required reserve rate contributed to the achievement of stabilization goals.
- Central Bank News: March 2011
Mar 31, 2011 ... Other policy moves included a+25bps increase to the required reserve rate for banks in Peru. Other notable events in monetary policy included ...
- Central Bank News: January 2011
Jan 31, 2011 ... The Bank also raised the interest rate paid on deposits by 100 basis points to 5%, and lifted the required reserve rate by 25 basis points to 9%, ...
- Required Reserves Paper Final All - European Financial ...
(increases) in required reserve rate when there is remuneration, hence RR changes are defined based on whether reserve balances are remunerated.
- Money.supply4
required reserve rate is lowered: The Fed can lower required reserve rate which raises the multiplier effect of high powered money (cash). The cash stays in the ...