Examlex
How does a central bank influence the lending capacity of the banks?
Bank Assets
Bank assets are resources owned by a bank, including loans, securities, and cash, which generate income.
Federal Funds Rate
The interest rate at which depository institutions lend reserve balances to other depository institutions overnight, a central tool used by the Federal Reserve in monetary policy.
Money Supply
The total amount of money available in an economy at any given time, including cash and digital balances that are readily accessible for spending.
Required Reserve Ratio
The fraction of deposits that banks are required to hold in reserve and not lend out, typically determined by a central bank.
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