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The final outcome of most host-parasite relationships depends on
Negative Excess Reserves
A situation where banks have less reserves than the required minimum, potentially leading to liquidity problems.
Federal Funds Market
The Federal Funds Market is a financial market that allows banks to borrow or lend excess reserves to each other on an overnight basis, with interest rates known as the federal funds rate.
Required Reserves
The minimum amount of funds that a bank must hold in reserve against deposit liabilities, as mandated by central banking authorities.
Open Market Sale
The selling of government bonds to the public or banks by the central bank to control the money supply.
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