Funadvice Logo
+ List
More Finance, Jobs & Money Questions

What would a bank do to meet its required reserves ratio?

Would it increase deposits? To me deposits cannot be increased unless someone makes on so i’m not sure. Any help please?

Become an Expert →
Answer #1

encourage people to open new checking/savings accounts, tighter requirements on new loans, or sell some of their mortgages to other institutions.

Recently bank of america sold a crap load of mortgages to Green Tree financing to be able to meet its reserve ratio. I believe it was due to the thousands of people who closed their accounts with them this past year.

Answer #2

following actions not help the bank increase its reserves? A. Borrow reserves in the federal funds market

B. Make additional loans

C. Sell securities

D. Borrow reserves from a Federal Reserve bank

so by eliminating these reasons or factors, bank can meet its requires reserve ratio :)

Answer #3

If a bank is short money at the end of the day, i.e. do not meet their ratios, a lot of banks borrow money from other banks for just that purpose

More Like This

money Listings

Funadvice Logo

© FUNADVICE 2025 · 212bydesign LLC

Answering questions since 2006

[email protected]

Miami, Florida, USA

Terms of use

Privacy policy

About Us

Answers

Built by Biznitos