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Definition
| a central bank's changing of the money supply to influence interest rates and assist the economy in achieving price-level stability, full employment, and economic growth |
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Definition
| the amount of money people want to hold for use as a medium of exchange |
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Definition
| the amount of money people want to hold as a store of value |
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Term
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Definition
| the sum of the transactions demand and asset demand for money |
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Term
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Definition
| the market in which the demand for and the supply of money determine the interest rate (or series of interest rates) in the economy |
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Definition
| the buying and selling of U.S. government securities by the fed for purposes of carrying out monetary policy |
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Definition
| the interest rate the federal reserve banks charge on the loans they make to commercial banks and thrifts |
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Term
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Definition
| a monetary policy tool used by the fed to expand reserves through auctioning off loans (reserves) anonymously to commercial banks |
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Term
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Definition
| fed actions designed to increase the money supply, lower interest rates, and expand real GDP |
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Term
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Definition
| fed actions to reduce (or restrict) the growth of the nation's money supply, increase interest rates, and restrain inflation |
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Term
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Definition
| the interest rate banks and thrifts charge one another on overnight loans made out of their excess reserves |
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Term
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Definition
| the benchmark interest rate that banks and thrifts use as a reference point for a wide range of loans to businesses and individuals |
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Term
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Definition
| the potential problem of monetary policy successfully controlling inflation during the expansionary phase of the business cycle but failing to expand spending and real GDP during the recessionary phase of the cycle |
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