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Why Is the Change in Reserve Requirement Not Frequently Used

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Essay

Why is the change in reserve requirement not frequently used to control the supply of money?


Definitions:

Demand for Currency

The desire or need for holding cash as opposed to other forms of wealth or assets.

Pegged Currencies

A regime where a country's currency value is fixed relative to another currency or a basket of currencies.

U.S. Dollar

The official currency of the United States, widely used as a benchmark and reserve currency around the world.

International Transactions

Deals that involve the exchange of goods, services, or financial assets across national borders.

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