The Fed has traditionally used three tools to conduct monetary policy: reserve requirements, the discount rate, and open market operations .available to the us federal reserve bank
The minimal amount of cash that financial institutions must keep on hand in order to comply with central bank standards is known as bank reserves. The bank must store this actual paper money in a vault on the property or in an account with the national bank. The purpose of the cash reserve regulations is to make sure that every bank has enough cash on hand to handle any significant and unforeseen demand for withdrawals.
The Federal Reserve in the United States sets the minimum amount of cash that each bank must hold, known as the reserve ratio. The reserve rate has historically varied between 0% and 10% of bank deposits. A reserve bank is a government organization in charge of controlling the money supply, interest rates, and currency of a state.
Reserve Bank also includes:
Australian Reserve Bank Reserve
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