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Interest
The charge for the privilege of borrowing money, typically expressed as an annual percentage rate.
Reserve Ratio
The fraction of depositors' balances that banks must have on hand as cash, determined by the central bank to control money supply.
Checking Deposits
Funds kept in a checking account at a financial institution, allowing for frequent withdrawals and deposits.
Deposit Expansion Multiplier
A ratio that determines the maximum amount by which the money supply can increase through the banking system's process of lending out deposits.
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