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Required Reserves
This refers to the minimum amount of funds that a bank must hold in reserve against deposit liabilities, as mandated by central banking authorities.
Asymmetric Information
A situation in which one party in a transaction has more or superior information compared to another, potentially leading to an imbalance or unfair advantage.
Creditworthiness
The assessment of a borrower's ability to repay loans based on their financial history, including factors like income, debt levels, and credit score.
Asset Portfolio
A diversified collection of investments held by an individual or institution, which can include stocks, bonds, real estate, and other financial assets.
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