Details Title: CH 14 Description: Monetary Policy Total Flash Cards: 5 Created: 11/18/2007 18:16:39		New Users: To study from this flashcard set, or to create your own your own study flash cards, REGISTER HERE. Existing Users: CLICK HERE. Additional Economics Flashcards
Cards in this set: Term Monetary Policy Definition running the country by adjusting money Term Discount rate Definition rate of interest charged by the Federal Reserve banks for lending reserves to private banks Term Federal Funds Rate Definition interest rate banks charge each other for reserve loans *Ben Bernacke lowered it 1.25% *Prime rate is 3 pts over fed funds rate Term Open Market Operations Definition Federal Reserve purchases and sales of govt bonds for the purpose of altering bank reserves Term Monetary Theories Definition 1. Classical Theory- supply & demand 2. Keynes- spend when times are bad 3. Milton Freedman- If you can control $, you can control economy