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LSDefine

Simple English definitions for legal terms

required reserve

Read a random definition: servitium regale

A quick definition of required reserve:

A required reserve is the minimum amount of money that a bank must keep on hand, as required by the Federal Reserve Board. This money can be in the form of cash in the bank's vault or deposits with regional Federal Reserve Banks. The purpose of the required reserve is to ensure that banks have enough money to meet the demands of their depositors and to maintain stability in the banking system.

A more thorough explanation:

A required reserve is the minimum amount of money that a bank must hold in the form of vault cash and deposits with regional Federal Reserve Banks, as required by the Federal Reserve Board. This reserve is set aside to ensure that the bank has enough funds to meet depositors' demands and to cover possible losses, such as from defaulting loans.

  • A bank is required to hold a certain percentage of its deposits as a reserve. For example, if the reserve requirement is 10%, and a bank has $1 million in deposits, it must hold $100,000 in reserve.
  • If a bank fails to maintain the required reserve, it may be subject to penalties or restrictions on its operations.

These examples illustrate how the required reserve is a crucial aspect of a bank's financial management and regulatory compliance. By holding a required reserve, a bank can ensure that it has enough liquidity to meet its obligations and maintain the confidence of its depositors and investors.

required-request law | requirement for division

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MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
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