A depository institution's reserve requirements vary by the dollar amount of net transaction accounts held at that institution. Effective December 29, 2011, institutions with net transactions accounts:
Of less than $12.4 million have no minimum reserve requirement;
Between $12.4 million and $79.5 million must have a liquidity ratio of 3%;
Exceeding $79.5 million must have a liquidity ratio of 10%.
The numerical amounts stated above are recalculated annually according to a statutory formula.
http://en.wikipedia.org/wiki/Reserve_req...
http://en.wikipedia.org/wiki/Fractional_...
1. What is the maximum level of loans that the banking system can issue?
