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How can a small business owner get into an innovative frame of mind? Explain.
Reserve Requirement
A regulatory mandate on banks to hold a certain percentage of their deposits in reserve either in their vaults or at the central bank.
Excess Reserves
The capital reserves held by a bank or financial institution in excess of what is required by regulators, creditors, or internal controls.
Money Supply
The total amount of monetary assets available in an economy at a specific time, including currency and various types of bank deposits.
Open Market Purchases
Actions by a central bank to buy securities in the open market to increase the money supply and lower interest rates, aiming to stimulate economic activity.
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