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Chapter 18
Federal Reserve and Monetary Policy
6
Economics
Undergraduate 1
04/27/2011

Additional Economics Flashcards

 


 

Cards

Term
Open Market Operations (532)
Definition
purchase and sale of government securites by the Federal Reserve System
Term
Discount Rate (534)
Definition
interest rate that the Fed charges commercial banks for the loans it extends to them
Term
Federal Funds Market (534)
Definition
market in which banks provide short-term loans to other banks that need cash to meet reserve requirements
Term
Money Market (536)
Definition
market in which money demand and money supply determine the equilibrium interest rate
Term
Velocity of Money (551)
Definition
a measure of how frequently money is turned over
Term
Quantity Theory of Money and Prices (552)
Definition
A thoery of the connection between the money supply and the price level when the velocity of money is constant
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