Which regulation is associated with reserve requirements and non-transaction accounts?

Regulation D is the correct regulation associated with reserve requirements and non-transaction accounts. This regulation is primarily concerned with the amounts that depository institutions must hold in reserve against deposits and the management of reserve requirements.

Under Regulation D, institutions are required to maintain reserves based on their transaction accounts, which include demand deposits and certain savings accounts. It specifies how much of the total deposits must be kept on reserve and how often these reserves must be calculated and maintained. Non-transaction accounts, such as savings accounts, typically have different reserve requirements compared to transaction accounts.

This regulation plays a crucial role in the monetary policy of the Federal Reserve by influencing how much money banks can lend based on their reserves. It also impacts the liquidity in the financial system. Understanding the implications of Regulation D is vital for professionals working in the payments and banking sectors, as it directly affects their operations concerning reserves and account management.