ECON 201 Macroeconomics Cash Reserve Ratio Discussion
Description
Topic: The reserve ratio is the portion of reservable liabilities that commercial banks must hold onto, rather than lend out or invest. This rate is determined by the Countrys Central Bank. The Cash Reserve Ratio of select Middle Eastern Countries is given below:
- Bahrain (%) 5.0
- Oman (%) 5.0
- Saudi Arabia (%) 7.0
- United Arab Emirates (%) 1.0
As can be seen, the cash reserve ratio of Saudi Arabia is the highest among the listed nations.
Q1: Discuss the implications of the 7% reserve rate on the Saudi economy, highlighting the advantages and disadvantages.
Q1 ANSWER:
Q2: reply to the following views Your replies need to be substantial and constructive in nature.
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