| 单词 | reserve asset ratio |
| 释义 | reserve asset ratio A required minimum proportion between banks' reserve assets and their deposits and other liabilities. This may be imposed or varied as part of a central bank's monetary policy, to enable it to control total bank lending by using open market operations to control the amount of reserve assets, or as part of the regulations imposed to safeguard the solvency of the banking system. It is not very useful for this latter purpose, as banks with unsatisfactory non-reserve assets are liable to become insolvent, however strong their reserve position. |
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