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Homework answers / question archive / The proportion of currency banks hold in their vault relative to their deposits they hold is called the _____ ratio

The proportion of currency banks hold in their vault relative to their deposits they hold is called the _____ ratio

Economics

The proportion of currency banks hold in their vault relative to their deposits they hold is called the _____ ratio.

a.

Liquidity.

b.

Acid-test.

c.

Currency drain.

d.

Reserve.

pur-new-sol

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It is the fixed proportion of currency banks hold in their vault relative to their deposits. The fixed ratio is known as Legal Reserve Ratio(LRR) and it is set up or decided by federal government as per the current market situation.