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Reserve Requirement
The Reserve Requirement is a central banking regulation that sets the minimum amount of reserves each bank must hold as a proportion of its deposits, a tool used to control the money supply.
Open Market Operations
Activities by a central bank to buy or sell government securities in the open market to influence the money supply and interest rates.
Reserve Requirement
A regulation set by central banks that specifies the minimum amount of reserves a bank must hold in relation to customer deposits.
Open Market Purchase
A monetary policy tool where the central bank buys government securities from the market in order to expand the money supply.
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