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How Banks Manage Their Reserves
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21:44 - 23:33 (01:48)

Banks borrow and lend money to each other on a daily basis, causing a panic and a run in one bank to spill over to other banks. The reserve requirement of banks is measured over a two-week average, which may lead to people withdrawing their money even if they are not panicked, to meet the requirement before a potential collapse.

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