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Reserve Requirement
The portion of depositors' balances that banks must have on hand as cash, a regulation set by central banks to ensure liquidity.
Deposit Multiplier
The ratio that describes the potential increase in bank deposits that can result from an increase in banks' reserves through the fractional reserve banking system.
Banking
The business conducted or services offered by a bank, including deposits, loans, and currency exchange.
Interest Rate
The ratio of a loan that represents interest expenses to the borrower, typically articulated as an annual percentage of the loan yet to be repaid.
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