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Open Market
An economic system with few barriers to free market activity where prices for goods and services are determined by supply and demand.
Excess Reserves
Excess funds maintained by a bank or financial institution above the minimum levels mandated by regulatory authorities, creditors, or the institution's internal regulations.
Securities
Financial instruments that represent an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership as represented by an option.
Commercial Bank
A financial institution that provides services such as accepting deposits, providing business loans, and offering basic investment products.
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