If any required cash reserves are in effect, the commercial banks can hold higher cash reserves of cash as required but not less hold. If the amount of cash they fell down h thanks to the amount required, they must borrow cash immediately, often borrowing from the central bank to restore the required reserve ratio
When the central bank specified an account required reserve ratio higher reserves that banks must maintain caution in any public situation, the consequences of which is to reduce the creation of the deposits of banks, reducing the value of and reduce the amount of excess money supply to any body any amount of uncertainty.
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