💶ap macroeconomics review

Required reserve ratio

Written by the Fiveable Content Team • Last updated August 2025
Verified for the 2027 exam
Verified for the 2027 examWritten by the Fiveable Content Team • Last updated August 2025

Definition

The percentage of deposits that depository institutions are required to hold as reserves; the reciprocal of the maximum money multiplier.

AP course connection

Topic 4.4: 4.4 Banking and the Expansion of the Money Supply

Unit 4

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