Term
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Definition
| Firms which accept deposits and channel funds from savers/lenders to spenders/borrowers. |
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Term
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Definition
| Funds held by banks to back deposits |
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Term
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Definition
| The amount of reserves that banks are required by the Federal Reserve |
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Term
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Definition
| The maximum amount a change in excess reserves is multiplied to find the resulting change in new deposits. |
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Term
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Definition
| The use of interest rates and the money supply to influence economic activity. |
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Term
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Definition
| The cost of borrowing money and the % return for saving and lending money |
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Term
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Definition
| The minimum % of deposits that banks must maintain as reserves |
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Term
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Definition
| The interest rate charged to banks on loans from the fed. |
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Term
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Definition
| The interest rate charged when banks lend reserves to each other (typically overnight) in the federal funds market. |
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Term
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Definition
| When the fed buys and sells government securities (U.S Treasury Bonds) in the market. |
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Term
| Transactions Demand for Money |
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Definition
| People hold money because they anticipate exchanging it to buy goods and services. |
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Term
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Definition
| People hold money as a store of wealth. |
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Term
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Definition
| The time that it takes for policy makers to recognize a problem, enact a plan to correct the problem, and the action to affect economic outcomes. |
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