1. Define the required reserve 2. What is the purpose of required reserves 3. If

Question

1. Define the required reserve

2. What is the purpose of required reserves

3. If required reserve change, what is the effect on the economy

4. There is countries without requiring reserve, what is the difference between them and the other countries

In U.S, Why did the Federal Reserve start paying interest on reserve balances held on deposit at the Fed 5. Our focus is the impact of paying interest on reserves

The professor recommended to talk about:

6. History of reserve and the history of reserve ratio

7. The differences of reserve categories and what the total reserve from all the categories

Explanation / Answer

ANSWERS:

1. Required Reserve :

2. Purpose of required reserves :

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