Examlex
Select the correct statement regarding vertical analysis.
Deposit Expansion Multiplier
A ratio that explains the total increase in deposits within the banking system generated from an initial deposit, based on the reserve requirement ratio.
Open Market Securities
Financial instruments such as bonds or stocks that are traded freely on the open market and can be bought and sold by investors.
Fed
Short for the Federal Reserve, which is the central banking system of the United States, responsible for monetary policy.
Business Investment
The act of allocating resources, usually in the form of capital, to create, expand, or improve a business's assets.
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