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Required Reserve Ratio
The percentage of deposits that banks are legally required to keep on hand as reserves, not loaned out.
Excess Reserves
Excess reserves are the capital reserves held by banks beyond the required minimum, often placed with central banks, earning interest.
Money Supply
The total amount of monetary assets available in an economy at a specific time, which includes cash, coins, and balances held in checking and savings accounts.
Time Deposits
Time deposits are bank deposits with a fixed term or maturity date, where the depositor agrees not to withdraw the funds until that date, typically earning a higher rate of interest.
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