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reserve requirement
(redirected from Cash reserve ratio)

    Also found in: Acronyms, Wikipedia 0.01 sec.
reserve requirement
The required percentage of reserves (deposits) that banks and thrifts must hold in cash or in deposits at the Federal Reserve. This requirement is set by the Fed. Any changes in the required percentage are used to influence credit conditions. An increased percentage requirement means fewer funds available for lending and a resultant rise in interest rates. See also monetary policy.
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