cash ratio

From King Business Dictionary
Related topics: Banking
cash ratioˈcash ˌratio (also cash deposit ratio) BANKING money that a bank must have in cash as a percentage of money customers have put into the bank, to be sure that the bank has enough to pay people wanting to take money out of the bank and as a control on MONEY SUPPLYBanks hope the rate for cash ratio deposits will drop from 0.35% of their sterling deposits to 0.2%. ratio