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Why use the expected utility theory?
Reserves
Assets held by financial institutions or central banks as a requirement or for ensuring liquidity in times of need, including cash, deposits, or securities.
Money Supply
The Money Supply is the total amount of monetary assets available in an economy at any specific time, including cash, coins, and balances held in checking and savings accounts.
Interest Rates
The expense incurred when taking out a loan, usually shown as a percent of the total amount loaned.
Federal Funds Market
A U.S. financial market allowing banks to borrow and lend excess reserves to each other, usually overnight, at an interest rate called the federal funds rate.
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