Examlex
Which consequence is correctly matched with an example of it?
Discount Rate
The interest rate charged to commercial banks and other depository institutions on loans received from the central bank's discount window.
Federal Funds Rate
The interest rate at which depository institutions lend reserve balances to other depository institutions overnight on an uncollateralized basis.
Reserve Requirement
The portion of depositors' balances that banks must have on hand as cash or in deposits with the central bank, used as a tool for monetary policy.
Bank Runs
A situation where a large number of a bank's depositors try to withdraw their funds simultaneously over concerns about the bank's solvency.
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