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A hypothesis is an assumption or a best guess that
Checking Deposits
Funds kept in a checking account at a financial institution, allowing for frequent withdrawals and deposits.
Deposit Expansion Multiplier
A ratio that determines the maximum amount by which the money supply can increase through the banking system's process of lending out deposits.
Required Reserve Ratio
A regulation that sets the minimum reserves each bank must hold to customer deposits and notes, effectively the same concept as the reserve-requirement ratio but stated differently.
Commercial Banks
Financial institutions that provide services such as accepting deposits, providing business loans, and offering basic investment products.
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