Banks can only give loans on a portion of their holdings, the rest of the money really does just sit there doing nothing. Arguably, it&#x27;s a hedge however the FED even manages reserve requirements in terms of monitory policy not as a hedge.<p><a href="http:&#x2F;&#x2F;www.federalreserve.gov&#x2F;monetarypolicy&#x2F;reservereq.htm" rel="nofollow">http:&#x2F;&#x2F;www.federalreserve.gov&#x2F;monetarypolicy&#x2F;reservereq.htm</a>