Examlex
For which of the following decisions would marginal analysis be MOST relevant?
Reserve Requirement
The minimum amount of reserves a bank must hold against deposits, set by the central bank, influencing the money supply and banking stability. A rephrased definition since "Required Reserves" is a similar concept.
Open Market Purchase
An activity by a central bank to buy securities in the open market to increase the money supply and stimulate economic growth.
Money Supply
The collective value of all cash, bank deposits, and liquid financial resources existing in an economy at a particular time.
Secondary Reserves
Assets that are highly liquid but not as liquid as primary reserves; they can quickly be converted into cash or other assets to meet financial obligations.
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