| Central bank's balance sheet | The statement of the assets and liabilities of the central bank.
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| Currency-to-deposit ratio | The ratio of publicly held currency to demand deposits held at commercial banks.
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| Deposit expansion multiplier | The formula for the increase in commercial bank deposits following a one-dollar increase in reserves.
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| Discount loans | A loan from the Federal Reserve to a commercial bank.
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| Excess reserves | Reserves in excess of required reserves.
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| Excess reserve-to-deposit ratio | The ratio of banks' excess reserves to their demand deposit liabilities.
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| Float | A loan from the Federal Reserve to the commercial banking system that is the result of the workings of the check-clearing process.
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| Foreign exchange intervention | The purchase or sale of foreign exchange by government officials with the intention of moving the nominal exchange rate.
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| Foreign exchange reserves | Assets of the central bank denominated in foreign currency.
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| Monetary base | The currency in the hands of the public plus reserves in the banking system; the central bank's liabilities.
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| Multiple deposit creation | Part of the money supply process whereby a $1 increase in the quantity of reserves works its way through the banking system, increasing the quantity of money by more than $1.
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| Open market operations | When the central bank buys or sells a security in the open market.
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| Open market purchase | The purchase of a security by the central bank.
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| Open market sale | The sale of a security by the central bank.
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| Required reserve ratio | The ratio of required reserves to demand deposit liabilities.
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| Required reserves | Reserves that a bank must hold to meet the requirements set by regulators. In the United States, the requirements are established by the Federal Reserve.
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| Reserves | A bank's vault cash plus the balance in its account at the Federal Reserve.
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| T-account | A simplified balance sheet in the form of a T that shows the changes in assets on one side and the changes in liabilities on the other.
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| Vault cash | Currency that is physically held inside a bank's vaults and automated teller machines (ATMs).
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