The reserve ratio is the portion of reservable liabilities that commercial banks must hold onto, rather than lend out or invest.
where it buys and sells securities. This rate helps set the bottom number for the rate range. It also pays Interest on Reserve Balances (IORB), the rate of which helps set the top number for the range. The Fed also uses the rate at its discount window and open market ...
When you create an account at a bank, in the contract, you agree to allow that bank to use a percentage of your deposits as loans to other bank customers. This doesn't mean you don't have access to the money you deposited; it only means that if you want to remove more than the p...