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LEGAL RESERVES: The total amount of vault cash or Federal Reserve deposits of a bank. These are the only bank assets that can be used legally to satisfy reserve requirements.

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RATIONAL BEHAVIOR

The notion that people make decisions based on the desire to obtain the greatest amount of satisfaction. Rational behavior essentially means that people prefer more to less. The presumption of rational behavior underlies most economic analysis, especially that applied to consumer demand theory.

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Today, you are likely to spend a great deal of time going from convenience store to convenience store looking to buy either a how-to book on surfing the Internet or a computer that can play music and burn CDs. Be on the lookout for slow moving vehicles with darkened windows.
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A lump of pure gold the size of a matchbox can be flattened into a sheet the size of a tennis court!
"Try not to become a man of success, but rather try to become a man of value. "

-- Albert Einstein

M2
M1 plus savings types of near monies, including savings deposits, certificates of deposits, money market deposits, repurchase agreements, and Eurodollars
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