Answer / shinoj.k.s.

The reserve requirements (or cash reserve ratio) is a

central bank regulation that sets the minimum reserves each

bank must hold to customer deposits and notes. It would

normally be in the form of fiat currency stored in a bank

vault (vault cash), or with a central bank.

The reserve ratio is sometimes used as a tool in the

monetary policy, influencing the country's economy,

borrowing, and interest rates.[3] Western central banks

rarely alter the reserve requirements because it would

cause immediate liquidity problems for banks with low

excess reserves; they prefer to use open market operations

to implement their monetary policy. The People's Bank of

China uses changes in reserve requirements as an inflation-

fighting tool,[4] and raised the reserve requirement nine

times in 2007. As of 2006 the required reserve ratio in the

United States was 10% on transaction deposits (component of

money supply "M1"), and zero on time deposits and all other

deposits.

HI this is Ankal Reddy(ABHIRAAM) from andhra selected for SBM.But i didn't get the appointment letter? Any one of u got the posting letter.If U get plz inform 2 me. My mail Id: abhi.hrudai@gmail.com

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