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The Federal Reserve Sets a Minimum Reserve Amount
To help protect both the public and bankers, The Federal Reserve sets a minimum Required Reserve Ratio.
The required reserve ratio, which is oftentimes just called the reserve ratio and abbreviated “rr” calculates the minimum amount of $ a bank must have in reserves given the amount of deposits it has.
Reserve ratios are typically in the 15% to 20% range. The Fed will change the ratio depending upon the health of the overall economy and banking system.