Excess reserves

Excess reserves of a financial institution outside its required limit set by its regulators or creditors. Money supply can be increased or decreased depending on the reserve ratios of banks. The more reserve they have, the more loans can be made to generate more profits.

Stocks | Forex | Options | Economics | Bonds | History | Language learning | Technology | Technical Analysis | Fundamental Analysis
Copyright © 2014 econtrader | Risk disclosure | Terms of Use