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Introduction into the Reserve Ratio The reserve ratio could be the small fraction of total deposits that a bank keeps readily available as reserves

Introduction into the Reserve Ratio The reserve ratio could be the small fraction of total deposits that a bank keeps readily available as reserves

The book ratio could be the small small fraction of total build up that the bank keeps readily available as reserves (in other words. Money in the vault). Theoretically, the book ratio may also use the type of a needed book ratio, or the small fraction of deposits that a bank is needed to carry on hand as reserves, or a excess book ratio, the small fraction of total build up that the bank chooses to help keep as reserves far beyond exactly what it really is necessary to hold.