Examlex
The initial value of a bond is its:
Excess Reserves
The capital reserves held by a bank or financial institution in excess of what is required by regulators, creditors, or internal controls.
Money Supply
The total amount of monetary assets available in an economy at a specific time, including currency and various types of bank deposits.
Open Market Purchases
Actions by a central bank to buy securities in the open market to increase the money supply and lower interest rates, aiming to stimulate economic activity.
Reserve Requirement
The minimum amount of reserves a bank is mandated to hold by central banking authorities, akin to the reserve ratio.
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