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Reserve Requirement
The reserve requirement is the minimum amount of reserves that banks must hold against deposits, set by monetary authorities to control the money supply.
Required Reserves
The minimum amount of funds that a bank must hold in reserve against deposit liabilities, as mandated by central banking regulations, to ensure liquidity and stability in the banking system.
Excess Reserves
The surplus of reserves held by banks over and above the regulatory requirements, often indicating caution or a lack of lending opportunities.
Easy Money Policy
A monetary policy strategy aimed at increasing the money supply to stimulate economic growth by lowering interest rates.
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