The is too powerful to be changed very often because a small change is magnified throughout the banking system..

The reserve ratio is too powerful to be changed very often because a small change is magnified throughout the banking system.

Explanation:

The reserve ratio by definition "is the amount of reservable liabilities that banks must hold instead than lend out or invest to any person or entity".

That represent an important concept in order to control the monetary policy for the economy any country and is very important when the governments wants to regulate the money supply.

We have a general rule that if the central bank of a country increase money supply in the economy,  then we need to be decrease the reserve ratio and vice versa.

The reserve ratio can be uses to control and manipulate the general conditions for all the banks in a country, because any change in the reserve ratio directly affect the banking system in all the conditions.

anjan should should report alteast 5000 on the first apyment and 10,000 each year

explanation: