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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.
Excess Reserves
The funds that banks hold over and above the required reserve ratio set by the central bank, which can be loaned out or invested.
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