Examlex
Marginal analysis means evaluating a current situation that does not change.
Legal Reserves
Reserves that depository institutions are allowed by law to claim as reserves; vault cash and deposits held at Federal Reserve district banks.
Excess Reserves
Excess Reserves are the reserves that banks hold over and above the legal or required minimum they need to keep against deposits.
Open Market Purchase
A monetary policy operation where a central bank buys government securities from the market in order to inject liquidity and encourage lending and investment.
Required Reserve Ratios
Regulatory requirements determining the minimum fraction of customer deposits that commercial banks must hold as reserves, rather than loan out.
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