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The major drawback of using the polygraph in employment is the frequency of false negatives.
Legal Reserve Ratio
The minimum fraction of customer deposits and notes that each commercial bank must hold as reserves rather than lend out, often set by central banks.
Reserve Requirement
A regulation that sets the minimum reserves each bank must hold to customer deposits and notes, intended to ensure bank liquidity and financial stability.
Excess Reserves
Funds held by banks over and above the legally mandated requirements to back deposits.
Demand Deposits
Bank accounts from which deposited funds can be withdrawn at any time without any notice to the bank, such as checking accounts.
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