Glossary Category: Economics - Page 10 - 3auk

reserve ratio

The reserve ratio (also known as the cash reserve ratio) is the portion of customer deposits that banks

A loan is a quantity of money taken from a lender or a bank that you must pay

An overdraft is a banking service that allows you to spend more money than you have in your

A savings account is a type of bank account where you keep money that you do not plan

A demand deposit account is a type of bank account that allows you to withdraw your money at

A deposit account is a type of bank account where you can safely store your money. These accounts

Commercial banks are financial businesses in the private sector. Their main activities are accepting deposits from customers and

The liquidity preference theory, created by economist John Maynard Keynes, explains that interest rates are set by the

The quantity theory of money is an economic principle stating that the total amount of money in an

For money to function effectively, it must possess several key characteristics: Durability: It must be strong enough to