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Definition
| The set of assets in an economy that people regularly use to buy goods & services from other people. |
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Definition
| An item that buyers give to sellers when they want to purchase goods & services. |
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Definition
| The yardstick people use to post prices and record debts. |
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Definition
| An item that people can use to transfer purchasing power from the present to the future. |
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Definition
| The ease with which an asset can be converted into the economy's medium of exchange. |
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Definition
| Money that takes the form of a commodity with intrinsic value. |
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Definition
| Money without intrinsic value that is used as money because of government decree. |
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Definition
| The paper bills & coins in the hands of the public. |
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Definition
| Balances in bank accounts that depositors can access on demand by writing a check. |
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Term
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Definition
| The central bank of the United States. |
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Definition
| An institution designed to oversee the banking system & regulate the quantity of money in the economy. |
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Definition
| The quantity of money available in the economy. |
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Definition
| The setting of the money supply by policymakers in the central bank. |
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Term
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Definition
| Deposits that banks have received but have not loaned out. |
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Term
| Fractional-Reserve Banking |
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Definition
| A banking system in which banks hold only a fraction of deposits as reserves. |
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Term
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Definition
| The fraction of deposits that banks hold as reserves. |
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Term
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Definition
| The amount of money the banking system generates with each dollar of reserves. |
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Definition
| The resources a bank's owners have put into the institution. |
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Definition
| The use of borrowed money to supplement existing funds for purposes of investment. |
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Term
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Definition
| The ratio of assets to bank capital. |
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Term
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Definition
| A government regulation specifying a minimum amount of bank capital. |
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Definition
| The purchase and sale of U.S. government bonds by the Fed. |
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Definition
| The interest rate on the loans that the Fed makes to banks. |
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Term
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Definition
| Regulations on the minimum amount of reserves that banks must hold against deposits. |
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Term
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Definition
| The interest rate at which banks make overnight loans to each other. |
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