Legal reserve requirements refer to the minimum percentage of total deposits (time deposits and demand deposits), required to be kept by the commercial banks themselves and with the central bank.
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Q1
What is meant by legal reserve requirements?
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Q2
Other name for legal reserve requirement is ________________.
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Q3
What is meant by Reserve?
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Q4
What is meant by 'Capital Reserve'?
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Q5
How can a central bank control excess demand in an economy by making changes in the legal reserve requirements?