Examlex
What is the correct definition of a PCI?
Potential Output
Potential Output refers to the highest level of goods and services an economy can produce sustainably, without triggering inflation.
Government Securities
Government-issued securities designed to fund government spending while providing investors with a profit.
Discount Rate
The interest rate charged by central banks on loans they provide to commercial banks, influencing monetary policy and the money supply.
Required Reserve Ratio
The required reserve ratio is the portion of depositors' balances that banks must have on hand as cash, set by central banking authorities to ensure liquidity.
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