Reserve Requirements and Monetary Management: An Introduction
April 1, 1993
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Summary
Reserve requirements are widely used by central banks as a means to improve monetary control, an instrument for policy implementation, a source of revenue, and a safeguard of bank liquidity. The effectiveness of reserve requirements in fulfilling these functions is reviewed, and the detailed modalities of their use are examined. Reserve requirements in a sample of developing countries are described.
Subject: Bank deposits, Banking, Currencies, Financial services, Monetary aggregates, Monetary base, Monetary policy, Money, Reserve requirements
Keywords: bank behavior, Bank deposits, bank liquidity, bank profit, banks' vault cash, borrowing bank, Currencies, currency denomination, deposit liability, foreign currency, liquid asset, maintenance requirement, monetary aggregate, Monetary aggregates, Monetary base, money multiplier, opportunity cost, reserve holding, reserve requirement, Reserve requirements, WP
Pages:
52
Volume:
1993
DOI:
Issue:
035
Series:
Working Paper No. 1993/035
Stock No:
WPIEA0351993
ISBN:
9781451978445
ISSN:
1018-5941
