Talk About: -Bernard De Fontenelle's Plurality of Worlds

question 75

Essay

Talk about:
-Bernard de Fontenelle's Plurality of Worlds

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Definitions:

Excess Reserves

The capital reserves held by a bank or financial institution in excess of what is required by regulators, creditors, or internal controls.

Required Reserve Ratio

The fraction of deposits that a bank is required by regulation to hold in reserve, not loaning them out, ensuring banks can meet their depositor's demands.

Required Reserve

The minimum amount of funds that a bank must hold in reserve against deposits made by customers, as mandated by central banking authorities.

Excess Reserves

The amount of reserves that a bank holds beyond the required minimum, which can potentially be lent out to create new money.