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Discount Rate
The interest rate charged by central banks on loans to commercial banks or the rate used in discounted cash flow (DCF) analysis to determine the present value of future cash flows.
Excess Reserves
The amounts of cash banks hold in their vaults or deposit at the central bank which exceed the regulatory requirements.
Money Supply
The entire financial capacity of an economy, taking into account cash, coins, and the amounts in both checking and savings accounts, at a specific point in time.
Required Reserve Ratio
The percentage of deposits that banks are legally required to keep on hand as reserves, not loaned out.
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