Examlex
What are innovation streams? Describe a typical innovation stream.
Discount Rate
The interest rate charged by central banks on loans offered to commercial banks or the rate used to discount future cash flows to present value.
Required Reserve Ratios
These are central bank regulations set on the minimum amount of reserves that commercial banks must hold against deposits.
Excess Reserves
The reserves held by banks over and above the legal reserve requirement set by the central bank or regulatory authority.
Actual Reserves
The total amount of funds or commodities a bank holds at a given time, including both required and excess reserves.
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