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What Is the Official Reserves Account (ORA), and Why Is

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What is the Official Reserves Account (ORA), and why is it more important for countries under a fixed exchange rate regime than for ones under a floating exchange rate regime?


Definitions:

Available Inventory

The quantity of goods or materials that a company has in stock and is ready for sale or distribution at any given time.

Standard Deviation

A measure of the dispersion or variation in a set of values, indicating how much the values deviate from the mean on average.

Perfectly Positively Correlated

A statistical term describing two variables that move in the same direction with a correlation coefficient of +1, indicating a perfect positive linear relationship.

Cycle Inventory

Inventory that a company holds to meet its normal sales operations, varying over the course of an operating cycle or period.

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