Finance Assignment help On Reserve Requirements As per experts of finance assignment help, Bank reserve a small percentage of its assets or customer deposits as a form cash reserves that help them to be secured in adverse conditions. By increasing the proportion of total assets to be held as liquid cash, bank changes the availability of funds for loans that determines supply of money. In short term, the Federal Reserve and other central banks can use this monitory tool to change economic output and employment. It is helpful to control credit volume by immediately reducing the deposits and credits of all member banks as there will be fewer funds for the banks to loan out (Tucker, 2010). In contrast of this Australia finance , strategy to increase reserve requirements cannot be successful in short term because it exerts an upward pressure on inflation due to imbalance between supply and demand.  In long term, in order to manage adverse economic conditions like inflation, the central bank can use this instrument of monetary control by decreasing the supply of money that will slow the rise in prices and decrease purchasing power of consumers. In addition, it helps to increase foreign exchange rate that attracts more foreign exchange investors due to high valuation of currency. In long term, it can generate economic destabilization in the country (Mankiw, 2011).   References Mankiw, N. G. (2011). Principles of Economics. USA: Cengage Learning. Tucker, I. B. (2010). Macroeconomics for Today. USA: Cengage Learning If you looking for finance assignment help of any topic then you can contact us any time.