Describe How Actual Reserves Are Calculated

question 177

Essay

Describe how actual reserves are calculated.Explain the difference between required reserves and excess reserves.How do reserves affect the amount of loans a bank can make?

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Definitions:

Making Friends

The process of forming connections and relationships with others that provide companionship, support, and a sense of belonging.

Losing a Friend

The experience of ending a friendship due to various reasons, which can lead to feelings of sadness, loneliness, and a period of adjustment and grief.

Without Friends

The state or condition of being without any social connections or companions.

Severe Maladjustment

A significant inability to adapt to and interact socially within one's environment, potentially leading to psychological issues.