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Why are entitlements such a difficult issue for policymakers to solve?
100-percent-reserve Banking
A banking system in which banks keep the full amount of their depositors' funds in reserve, meaning they do not loan out any of the deposits but instead hold 100% of deposited money.
Money Supply
The total amount of currency and monetary assets within an economy at a specific time.
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.
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