Examlex
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Required Reserves
The minimum amount of funds that a bank must hold in reserve against specified deposit liabilities, as dictated by the central bank's regulations.
Primary Reserves
Liquid assets held by financial institutions to meet regulatory requirements and immediate liquidity needs.
Secondary Reserves
Assets that are easily convertible into cash but are not held in the form of cash itself, serving as a backup for primary reserves in financial institutions.
Borrow From The Fed
The act of financial institutions taking loans from the Federal Reserve, usually to maintain reserve requirements or to stabilize liquidity.
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