In order for a bank to remain compliant with its reserve requirements, it must ensure that a certain percentage of its _______ is held in reserve.

In order for a bank to remain compliant with its reserve requirements, it must ensure that a certain percentage of its deposits is held in reserve. This means that when people deposit money in the bank, the bank is required to keep a part of that money in its vault or with the central bank, rather than lending it all out. For example, if a bank has $1 million in deposits and the reserve requirement is 10%, it must keep $100,000 in reserve. This helps the bank to have enough cash on hand to meet customer withdrawals and maintain stability in the financial system. By managing its reserves carefully, the bank can operate safely while also providing loans to people and businesses.