There Have Been Many Changes Made to the Method for Computing

question 30

Essay

There have been many changes made to the method for computing the required reserves for banks over the years.Currently, the lagged reserve accounting used enables a bank and the Fed to know the level of reserves required over a period of time well before the period of time begins.Why is this method for computing reserves advantageous to banks as well as the Fed?

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Definitions:

Flexibility

The ability to move joints through their full range of motion; important in fitness, wellness, and preventing injuries.

Balance

The ability to maintain the body's center of mass over its base of support, a key component of motor coordination.

Pelvic Girdle

The pelvic girdle is the bony structure located at the base of the spine that connects the torso and legs, providing support for the upper body.

Thoracic Vertebrae

The twelve vertebrae located in the mid-back region of the spine, forming part of the thoracic cage structure.