Examlex
In sequence, the four steps typically followed to create a structure chart are ____.
Excess Reserves
The capital reserves held by a bank or financial institution in excess of what is required by regulators, creditors, or internal controls.
Required Reserve Ratio
The fraction of deposits that a bank is required by regulation to hold in reserve, not loaning them out, ensuring banks can meet their depositor's demands.
Required Reserve
The minimum amount of funds that a bank must hold in reserve against deposits made by customers, as mandated by central banking authorities.
Excess Reserves
The amount of reserves that a bank holds beyond the required minimum, which can potentially be lent out to create new money.
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