Term
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Definition
| the decisions the Fed makes about money and banking |
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Term
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Definition
| the process by which banks record whose account gives up money and whose account receives money |
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Term
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Definition
| funds that banks keep in accounts with the Fed, called federal funds |
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Term
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Definition
| the interest rate banks charge one another for loans |
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Term
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Definition
| the amount of funds banks must hold in reserves |
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Term
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Definition
| the rate the Fed charges banks for loans to banks |
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Term
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Definition
| total assets minus total liabilities |
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Term
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Definition
| the process of manufacturing currency and putting it to use |
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Term
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Definition
| the percentage of deposits banks are required to keep in reserves |
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Term
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Definition
| the formula economists use to figure out the total amount amount of new money that can be created and added to the money supply |
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Term
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Definition
| reserves that are more than the required amount |
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Term
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Definition
| the interest rate banks charge their best customers |
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Term
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Definition
| the buying and selling of government securities to alter the supply of money |
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Term
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Definition
| the belief that the money supply is the most important factor in the entire economy |
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Term
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Definition
| a monetary policy that increases the money supply |
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Term
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Definition
| a monetary policy that reduces the money supply |
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Term
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Definition
| the time needed for monetary policy to go into effect |
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Term
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Definition
| the time it takes for monetary policy to have an effect |
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