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Bank Runs
A situation where a large number of a bank's depositors try to withdraw their funds simultaneously over concerns about the bank's solvency.
Reserve Banking
A banking system in which banks hold a fraction of their deposits in reserve, while lending out the remainder to generate profits.
Federal Funds Rate
The interest rate at which banks and credit unions lend reserve balances to other depository institutions overnight, on an uncollateralized basis.
Reserve Requirement
A regulatory mandate on banks to hold a certain percentage of their deposits in reserve either in their vaults or at the central bank.
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