Examlex
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Money Multiplier
A factor that quantifies the amount of additional money that can be created in a bank's lending process for a given amount of reserves.
Excess Reserves
Excess reserves are the capital reserves held by a bank or financial institution in excess of what is required by regulators, central bank, or other financial authority.
Opportunity Cost
Missing out on potential opportunities from different choices when opting for a single alternative.
Holding Money
The act of keeping money in cash or in very liquid assets to facilitate transactions or as a precaution against uncertainties.
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