Examlex
Which of the following is a useful tool for investigating what-if questions
Deposit Expansion Multiplier
The ratio that measures the potential increase in total deposits in the banking system generated from an increase in primary deposits.
Excess Reserves
Funds that banks hold over and above the required reserve ratio set by a central banking authority, often for safety or emergency purposes.
Reserve Requirements
The minimum amount of reserves that a bank must hold as mandated by a central bank, affecting the bank's ability to lend.
Glass-Steagall Act
A 1933 law creating a regulatory firewall between commercial and investment banking sectors to prevent financial crises.
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