Rubber Duck
11th November 2007, 11:01 AM
http://en.wikipedia.org/wiki/Fractional-reserve_banking
Note the 20% rate used is very high. China has just increased theirs to 13.5% to rein in inflation.
List of Reserve Requirements in various currency zones are given here, although these figure maybe out of date:
http://en.wikipedia.org/wiki/Reserve_requirement
The US has a reserve rate of 10% but many countries have no minimum reserve requirements at all. The consequences of this are discussed here:
http://wfhummel.cnchost.com/reservereqs.html
Note the 20% rate used is very high. China has just increased theirs to 13.5% to rein in inflation.
List of Reserve Requirements in various currency zones are given here, although these figure maybe out of date:
http://en.wikipedia.org/wiki/Reserve_requirement
The US has a reserve rate of 10% but many countries have no minimum reserve requirements at all. The consequences of this are discussed here:
http://wfhummel.cnchost.com/reservereqs.html