01
Bank reserves include highly liquid money used to settle payments and meet cash needs, including reserve balances held at the Federal Reserve and vault cash in relevant monetary statistics.
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02
The Federal Reserve reduced reserve requirement ratios on net transaction accounts to zero percent effective March 26, 2020, eliminating reserve requirements for all depository institutions.
supported03
A zero reserve requirement does not mean banks hold zero reserves; banks continue to hold reserve balances for payment settlement and liquidity management.