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Which activity will most likely result in an external benefit?
Reserve Requirements
Regulations set by central banks determining the minimum amount of reserves that banks must hold against deposits, used to control the money supply.
Lender of Last Resort
An institution, usually a country's central bank, that offers loans to banks or other eligible institutions that are experiencing financial difficulty or are deemed at risk of failure.
Financial Institutions
Financial Institutions are organizations such as banks, credit unions, and insurance companies that provide a wide range of financial services including deposits, loans, investments, and currency exchange.
Federal Funds Rate
The borrowing cost at which financial institutions lend and borrow federal funds (reserves at Federal Reserve Banks) from each other overnight.
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