Examlex
Which of the following abbreviations is NOT matched with the correct meaning?
Required Reserve Ratio
The minimum fraction of deposits banks are required by law to keep as reserves, either in their vaults or on deposit at a central bank.
Term Auction Facility
A monetary policy tool used by the Federal Reserve to provide short-term loans to banks, aiming to improve liquidity and stability in financial markets.
Bank Insolvency
A situation where a bank's liabilities exceed its assets, making it unable to meet its obligations and continue its operations.
Excess Reserves
Banks' reserves that exceed the minimum requirement set by a central bank, not lent out and often kept for emergency purposes.
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