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The mechanism of competitive inhibition involves
Required Reserve Ratio
The fraction of deposits that banks are required by law to keep on hand or with the central bank, rather than lend out.
Money-Creation Process
The mechanisms through which new money is produced and introduced into the economy, primarily conducted by central banks and commercial banks.
Government Securities
Financial instruments issued by the government to finance its expenditures, including bonds, bills, and notes.
Checkable Deposits
are bank account balances that can be readily accessed and used for payments or withdrawals via checks, debit cards, or electronic transfers.
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