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Fractional Reserve Minimum

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Gene posted on Wed, Sep 24 2008 8:05 PM

Does anybody know what the Reserve minimum is? How dynamic is it?  Where can I find this information on the internet? I am new to the community.  I just finished "A case againest the fed" and "What has the goverment done with our money"  Frankly I am scared.  I have told some coworkers about the book and they just say I guess he can see the future but nobody is taking this serious.  Thanks

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Answered (Verified) eliotn replied on Wed, Sep 24 2008 8:20 PM
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The Federal Reserve makes no effort to hide its reserve requirements. They can be found here.

 

Schools are labour camps.

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You could call the FED tomorrow.

I believe the Fractional Reserve Banking entry on Wikipedia has some information about reserve ratios.

Don't be scared.  Keep learning and telling others.  Learn to teach and inform.  You can make a difference.

"When you're young you worry about people stealing your ideas, when you're old you worry that they won't." - David Friedman
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Answered (Verified) eliotn replied on Wed, Sep 24 2008 8:20 PM
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The Federal Reserve makes no effort to hide its reserve requirements. They can be found here.

 

Schools are labour camps.

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eliotn replied on Wed, Sep 24 2008 8:27 PM

It seems like the reserve requirement is 0% if the bank does not have more then 9.3 million on its net transaction accounts, 3% between 9.3 million and 43.9 million, and 10% for more than 43.9 million.

For non-personal time deposits and eurocurrency liabilities, it is again 0%, can someone find out what these mean?

I should start a bank with no reserves!

Schools are labour camps.

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Gene replied on Wed, Sep 24 2008 8:39 PM

Thanks.

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banned replied on Thu, Sep 25 2008 5:02 AM

eliotn:
I should start a bank with no reserves!

There have to be at least some reserves in a normal deposit bank, else depositors will be unable to withdraw anything.

 

eliotn:

It seems like the reserve requirement is 0% if the bank does not have more then 9.3 million on its net transaction accounts, 3% between 9.3 million and 43.9 million, and 10% for more than 43.9 million.

For non-personal time deposits and eurocurrency liabilities, it is again 0%, can someone find out what these mean?

 

nonpersonal time deposits are sums of money deposited by corporations and large investment firms or something

They're factored into the m2 iirc. They're time deposits so they're not immediately withdrawable.

Eurocurrencies are foreign money deposits and are also factored into the m2.

 

 

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