Examlex
Which of the following statements most appropriately describes scenario analysis?
Deposit Multiplier
The ratio of the amount of deposits created by banks to the amount of new reserves.
Reserve Ratio
The fraction of depositors' balances banks must have on hand as cash, a regulatory requirement designed to ensure banks' liquidity and stability.
Inflation
The pace at which prices for goods and services broadly ascend, causing the value of money to decrease.
Federal Reserve System
The central banking system of the United States, responsible for regulating the national money supply and ensuring financial stability.
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