WASHINGTON (CN) - To keep cash circulating though the economy rather than sitting in bank vaults, the Federal Reserve is raising the amount of deposits subject to a zero percent reserve to $10.3 million up from $9.3 million, and the amount of deposits subject to a 3 percent reserve to $44.4 million from $43.9 million.
These changes are to reduce the amount of each deposit that banks must keep in reserve for their customers to draw on for daily cash needs. While determination of these cutoff points is revised annually, the timing of this year's recalculation may help keep capital markets fluid.
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