How Do Excess Reserves Increase the Money Supply

question 73

Essay

How do excess reserves increase the money supply?

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Definitions:

Interference Fit

A method of fitting two parts together using a dimension in which the size of the hole is smaller than the size of the shaft to be inserted, creating a high-pressure seal.

Locational Fits

Types of fits defined by standard tolerances that determine how tightly or loosely two parts will connect, particularly regarding their location accuracy.

Mating Parts

Mating parts refer to components designed to fit together within an assembly, requiring precise manufacturing to ensure correct fit and function.

Clearance

The intentional gap or space between two parts or components to ensure they do not interfere with each other, allowing for free movement or assembly.