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Which of the following is an example of a proactive strategy to combat crime?
Excess Reserves
Funds that banks hold over and above the legal reserve requirements set by central banking authorities.
Reserve Requirement
This is a monetary policy tool used by central banks, specifying the minimum amount of reserves a bank must hold against its deposits. It influences how much money a bank can lend and thus helps control money supply and inflation.
Excess Reserves
The funds that commercial banks hold in their reserves over and above the regulatory requirement set by the central bank.
Reserve Ratio
The fraction of deposits that a bank is required to hold in reserve and not loan out, as mandated by central banking authorities.
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