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ADVERSE SELECTION: When a negotiation between two people with different amounts of information, that is, asymmetric information, restricts the quality of the good traded. This typically happens because the person with more information is able to negotiate a favorable exchange. This is frequently referred to as the "market for lemons."
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FEDERAL RESERVE DEPOSITS Deposits that commercial banks keep with the Federal Reserve System. Federal Reserve deposits play three key roles in the banking system. One, they are used by the Federal Reserve system to process or clear checks. Two, they are loaned between commercial banks through the Federal funds market. Three, they are used by the Federal Reserve System to control the money supply. Federal Reserve deposits are one of two types of bank assets that are considered bank reserves and used to satisfy reserve requirements. The other is vault cash.
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GRAY SKITTERY
[What's This?]
Today, you are likely to spend a great deal of time flipping through mail order catalogs looking to buy either a genuine down-filled comforter or a 200-foot blue garden hose. Be on the lookout for high interest rates.
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A half gallon milk jug holds about $50 in pennies.
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"Old age isn't so bad when you consider the alternative. " -- Cato, Roman orator
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LRTC
Long Run Total Cost
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