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If there is a negative externality involved in producing good X, then
Financial System
The complex of institutions, including banks, markets, and regulators, that facilitate the flow of funds between savers and borrowers.
Open Market Operations
Central bank activities that involve the buying and selling of government securities in the market to influence liquidity and interest rates.
Reserve Requirement
Central bank regulations regarding the minimum amount of reserves that commercial banks must hold against deposits.
Margin Requirements
The minimum amount of equity that must be maintained in a margin account as mandated by brokers or exchanges.
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