Examlex
Which of the following is true in regards to the significant aspects of familism?
Reserve Ratio
The reserve ratio is the fraction of total deposits that a bank is required to hold in reserve and not loan out, acting as a regulatory tool to ensure the stability of the banking system.
Bank Reserves
Funds that banks hold to meet immediate withdrawal demands and regulatory requirements.
Money Supply
The total amount of money—coins, currency, and bank deposits—circulating in an economy.
Money Multiplier
The ratio that measures the maximum amount of commercial bank money that can be created by a given unit of central bank money.
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