reserve ratio

noun

Definition of reserve ratio

: the ratio of the cash reserves of a bank to liabilities especially : the ratio of gold certificates to combined deposit liabilities and outstanding Federal Reserve notes of the Federal Reserve banks

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History and Etymology for reserve ratio

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Cite this Entry

“Reserve ratio.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/reserve%20ratio. Accessed 28 Nov. 2021.

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