Describe How Actual Reserves Are Calculated and Explain the Difference

question 505

Essay

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

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Definitions:

World Population

The total number of human beings currently living on Earth, which is subject to change due to birth rates, death rates, and migration patterns.

Infant Mortality Rate

is a measure indicating the number of deaths of infants under one year of age per 1,000 live births in a given year, used as an important indicator of the health status of a population.

Gesellschaft

A term used in sociology to describe a society or group characterized by impersonal, formal relations and a focus on individual accomplishments.

Immigrants

People who move to a country other than their native country to live, often for reasons like employment, education, or escaping conflict.