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Required Reserve Ratio
The fraction of deposits that banks are mandated to keep as reserves by the central bank to ensure liquidity and stability in the financial system.
Money Multiplier
The multiple by which the money supply changes as a result of a change in fresh reserves in the banking system.
Money-Creation Process
The procedure through which the banking system generates money by issuing loans greater than the amount of reserves it holds.
M1
The measure of a country's money supply that includes physical currency and coin, demand deposits, traveler's checks, and other checkable deposits.
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