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Required Reserve Ratio
The fraction of deposits that a bank is mandated by regulations to hold in reserve and not loan out.
Excess Reserves
The amount of reserves that a bank holds beyond the required minimum, which can be loaned out to generate earnings.
Open Market Operations
A monetary policy tool used by central banks to control the money supply by buying or selling government securities in the open market.
Reserve Requirement Ratio
The fraction of deposits which a bank is mandated to hold in reserve, either in its own vaults or with the central bank, rather than lending to consumers.
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