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Central Banks
National banks that provide financial and banking services for a country's government and commercial banking system, as well as implementing government's monetary policy and issuing currency.
Required Reserve Ratio
The fraction of deposits that banks are required to hold in reserve and not lend out, determined by the central bank.
Interest Rates
The cost of borrowing money or the return on investing, typically expressed as a percentage of the principal, and set by central banks or determined by the market.
Excess Reserves
The capital reserves held by a bank or financial institution in excess of what is required by regulators, creditors, or internal controls.
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