Sterling Terrell

smart ideas from books (mostly)

  • Home
  • About
    • My CV
    • Books
    • Series
  • Newsletter
  • Advertising
  • Tools
You are here: Home / Potpourri / Economics 101: Bank Reserves

Economics 101: Bank Reserves

Economics 101: Bank Reserves

[This is part of the series: The Complete Guide To Economics 101.]

What are bank reserves?

Bank Reserves are the portion of deposits that are held – on hand – by a bank.

For instance, say a given bank has $5 billion in deposits.

To fulfill possible claims on those deposits, the bank might wish to keep $1 billion on hand, while lending out the other $4 billion in loans.

Obviously, the more reserves that are kept, the safer.

But then there is less money to lend for profit.

In most countries, however, the level of bank reserves is regulated.

Share this:

  • Click to share on Facebook (Opens in new window)
  • Click to share on Twitter (Opens in new window)
  • Click to share on Pinterest (Opens in new window)
  • Click to share on Tumblr (Opens in new window)
  • Click to share on LinkedIn (Opens in new window)
  • Click to share on Reddit (Opens in new window)
  • Click to share on Pocket (Opens in new window)
  • Click to share on WhatsApp (Opens in new window)

Related

Filed Under: PotpourriTagged With: #Economics101

Privacy & Cookies: This site uses cookies. By continuing to use this website, you agree to their use.
To find out more, including how to control cookies, see here: Privacy Policy

Connect

  • Facebook
  • LinkedIn
  • Pinterest
  • Twitter

Free Weekly Newsletter:

Search

Top Posts

  • The Tricky Lily Pad Riddle (You Probably Can't Solve)
    The Tricky Lily Pad Riddle (You Probably Can't Solve)
  • This Is What I Remember About My Grandfather
    This Is What I Remember About My Grandfather
  • Fundamentally A Loner
    Fundamentally A Loner
  • Random Thoughts – 340
    Random Thoughts – 340
  • The Applause of Heaven, By: Max Lucado
    The Applause of Heaven, By: Max Lucado
  • Never Heard From Them Again
    Never Heard From Them Again
  • 31 Persuasion Tips That I Learned From Scott Adams
    31 Persuasion Tips That I Learned From Scott Adams
  • Economics 101: Vertical Equity
    Economics 101: Vertical Equity
  • How To Be Idle, By: Tom Hodgkinson
    How To Be Idle, By: Tom Hodgkinson
  • Instabooks 146
    Instabooks 146

Supporting = Loving

Recent Posts

  • And The Last Heart Will Weep When
  • Random Thoughts – 340
  • Fundamentally A Loner
  • What Is The New World Order?
  • Never Heard From Them Again
  • Coffee Donuts And Children
  • Random Thoughts – 339
  • The 1999 Caedmon’s Call Guild Concert
  • Finally Making It
  • Thankful You Are Here To Chat
  • 2022 Kentucky Derby
  • Random Thoughts – 338
  • Cafe Energy
  • Instabooks 362
  • Overwhelming and Stressful
  • Oblique Humor Is Better Than Anonymity
  • Random Thoughts – 337
  • With You Watching Tinker Bell
  • This Celebrity Grew Up With John McEuen
  • The Magic Of Comedic Confidence
  • Random Thoughts – 336
  • Not Offering Punchlines
  • A Needle In A Haystack, Not A Haystack
  • Living Closer To All Of
  • Instabooks 361

Copyright © 2022 · Generate Pro On Genesis Framework · WordPress · Log in