Examlex
A premium bond is a bond whose par value is greater than the market value of that bond.
Excess Reserves
Funds that banks hold over and above the regulatory requirement, which can influence the bank's ability to lend and the overall money supply.
Required Reserve Ratio
The fraction of deposits that banks are required to hold in reserve and not lend out, set by the central bank.
Required Reserves
This refers to the minimum amount of funds that a bank must hold in reserve against deposit liabilities, as mandated by central banking authorities.
Asymmetric Information
A situation in which one party in a transaction has more or superior information compared to another, potentially leading to an imbalance or unfair advantage.
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