ECON 201 Saudi Electronic University The Cash Reserve Ratio Discussion


I want an sense for this Management interrogation to aid me con-over.

Topic: The reservation kinsman is the member of reservable liabilities that marketable banks must restrain onto, rather than present out or endue. This scold is unshaken by the Country’s Central Bank. The Currency Reservation Kinsman of chosen Middle Eastern Countries are abandoned below:

Bahrain (%) — 5.0

Oman (%) — 5.0

Saudi Arabia (%) — 7.0

United Arab Emirates (%) — 1.0

As can be seen, the currency reservation kinsman of Saudi Arabia is highest incompact the listed nations.

“Discuss on the implications of the 7% reservation scold on Saudi administration, highlighting the advantages and disadvantages”.