Absolute (Money) Price

Regulatory Capital The amount of
capital that a financial institution must hold
because of regulatory requirements.
Regulatory Capital Arbitrage A means
of changing the composition of assets in
such a way as to lower the overall amount
of capital a financial institution holds for a
given level of assets.
Regulatory Lag The time period between
when a natural monopoly’s costs change and
when the regulatory agency adjusts prices for it.
Relative Price The price of a good in
terms of another good.
Rent Seeking Actions of individuals and
groups who spend resources to influence public
policy in the hope of redistributing (transferring) income to themselves from others.
Required Reserve Ratio (r) A percentage
of each dollar deposited that must be held in
reserve form (specifically, as bank deposits at
the Fed or vault cash).
Required Reserves The minimum dollar
amount of reserves that a bank must hold
against its checkable deposits, as mandated
by the Fed.
Reserve Deficient The situation that
exists when a bank holds fewer reserves than
specified by the reserve requirement.
Reserve Requirement The Fed rule that
specifies the amount of reserves a bank must
hold to back up deposits.
Reserves The sum of bank deposits at the
Fed and vault cash.
Residual Claimant A person who shares
in the profits of a business firm.