Briefing explain the money the fractional reserve banking system works and how the Federal Reserve implements monetary policy primarily thru the Federal Open Market Committee which influences money supply and interest rates..

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Q: what is profit margin?

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A: Note:  We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

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A: Disclaimer- “Since you have asked multiple question, we will solve the first three question for you…

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A:

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Q: 32 trillion.

A:

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A: Answer;

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Required Reserve and Excess Reserve Analysis

A required reserve is an amount of cash that banks must keep with themselves, which is certain percentage of the deposits made by their customers. Required reserve is a percentage of the bank's deposits that the respective bank must have on each overnight. The percentage rate is set and determined by the nation’s central bank. It is important to have such funds accumulated to meet its uncertain obligations, sudden liabilities and withdrawals. Required reserve is also known as reserve ratio. Reserve ratio is an important tool to control the money supply.