Required reserves

The dollar amounts based on reserve ratios that banks are required to keep on deposit at a Federal reserve Bank.

Similar financial terms

Unleveraged required return
The required return on an investment when the investment is financed entirely by equity (i.e. no debt).

Required yield
Generally referring to bonds, the yield required by the marketplace to match available returns for financial instruments with comparable risk.

Required return
The minimum expected return you would require to be willing to purchase the asset, that is, to make the investment.

Leveraged required return
The required return on an investment when the investment is financed partially by debt.

Official reserves
Holdings of gold and foreign currencies by official monetary institutions.

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Did you know?

Law of one price

An economic rule stating that a given security must have the same price regardless of the means by which one goes about creating that security. This implies that if the payoff of a security can be synthetically created by a package of other securities, the price of the package and the price of the security whose payoff it replicates must be equal.


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