Examlex
Which of the following is not a disadvantage to simulation?
Inflation Rates
The percentage increase in the price level of goods and services over a period, reducing purchasing power.
Excess Reserves
Bank reserves that exceed the required minimum amount that financial institutions must hold in reserve against deposit liabilities.
Required Reserves
The minimum amount of reserves that a bank must hold as dictated by central banking regulations, typically a percentage of deposits.
Interest
The cost of borrowing money, typically expressed as a percentage of the amount borrowed, that lenders charge borrowers for the use of their funds.
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