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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?


Definitions:

Good News

Information or messages that are positive, favorable, or beneficial in nature, often leading to happiness or satisfaction.

Direct Approach

A communication method where the main point is stated at the beginning, followed by supporting details, often used in business writing.

Routine Communications

Regular, everyday exchanges of information that follow established patterns or procedures.

Neutral

Impartial or unbiased; not favoring one side more than another.

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