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In each group, select the letter of the item that is not parallel with the other items in the group.
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Reserves
Reserves refer to funds or other assets that banks or financial institutions hold to meet unexpected demands or regulatory requirements.
Required Reserve Ratio
A regulation set by central banks determining the minimum amount of reserves that banks must hold against deposits, affecting money supply.
Excess Reserves
The reserves that banks hold over and above the legal requirement; these are not loaned out and do not earn interest for the bank.
Required Reserves
The minimum amount of funds that a bank must hold in reserve against deposits, as mandated by the central bank.
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