To be continued Reserve requirements are the fraction of deposits that banks and other depository institutions are required by law or requlation tc hold in reserve and not lent out Through varying the reserve requirement ratios, central bank can adjust the money supply amount in the market. The higher the reserve requirement ratio and the more the type of reservable deposits, the less the money and the derivative deposits used by banksTo be continued  Reserve requirements are the fraction of deposits that banks and other depository institutions are required by law or regulation to hold in reserve and not lent out.  Through varying the reserve requirement ratios, central bank can adjust the money supply amount in the market. The higher the reserve requirement ratio and the more the type of reservable deposits, the less the money and the derivative deposits used by banks. 8