Regulated domestic currency deposits ensure that banks have enough liquid funds to satisfy demand if large numbers of domestic depositors should suddenly decide to withdraw their money.

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Regulated domestic currency deposits require banks to hold a certain amount of liquid funds, which can help ensure that they have enough money to meet the demands of domestic depositors if many of them withdraw their funds at once. This can help prevent bank runs and other financial instability.

Regulated Domestic Currency Deposits Ensure That Banks Have Enough Liquid