Matching

question 18

Short Answer

Matching

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Definitions:

Federal Reserve

The central bank of the United States, responsible for monetary policy, regulating banks, maintaining financial stability, and providing financial services.

Reserve Ratio

The fraction of depositors' balances that banks must have on hand as cash, a regulation set by central banks to ensure liquidity.

Vault Cash

The physical currency that a bank holds in its vault and automatic teller machines (ATMs) as a part of its reserves.

Required Reserve Ratio

The fraction of deposits that regulators require a bank to hold in reserve and not lend out.