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What is the drawback of using circuit-switching networks?
Fed's Legal Reserve Requirements
The minimum reserves each bank must hold to customer deposits and notes, as mandated by the Federal Reserve.
Reserve Requirement
The amount of funds that a bank must hold in reserve against deposits made by its customers, a regulatory measure to ensure banks can meet withdrawal demands.
Deposit Multiplier
The ratio that measures the potential impact of a change in banking reserves on the money supply, indicating how much money banks can create with each dollar of reserves.
Fed Funds Rate
The interest rate at which depository institutions lend reserve balances to other depository institutions overnight, a vital monetary policy tool used by the Federal Reserve.
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