Examlex
A rationing device is needed because scarcity exists.
Term Auction Facility
A monetary policy tool used by the Federal Reserve to provide short-term loans to banks, aiming to improve liquidity and stability in financial markets.
Bank Insolvency
A situation where a bank's liabilities exceed its assets, making it unable to meet its obligations and continue its operations.
Excess Reserves
Banks' reserves that exceed the minimum requirement set by a central bank, not lent out and often kept for emergency purposes.
Reserve Requirement
The minimum amount of reserves that banks must hold against deposits, as mandated by central banks.
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