Examlex
Which of the following is not covered under FDA regulations?
Fractional Reserve Economy
An economic system where banks hold a portion of customers' deposits in reserve and lend out the remainder, thus creating money.
Required Reserve Ratio
The minimum fraction of deposits banks are required by law to keep as reserves, either in their vaults or on deposit at a central bank.
Term Auction Facility
A monetary policy tool used by the Federal Reserve to provide short-term loans to banks, aiming to improve liquidity and stability in financial markets.
Bank Insolvency
A situation where a bank's liabilities exceed its assets, making it unable to meet its obligations and continue its operations.
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