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| Money supply macroeconomic important factor |
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| Time implement monetary policy |
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| Time monetary policy effect |
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| Fraction deposit banks required |
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Term
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Definition
| Formula new money created demand deposit added to money supply |
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| Bank reserve greater amount required Federal Reserve |
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| Interest rate banks charge short term loans |
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| Buying selling government securities alter supply of money |
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| Process banks records from payer to payee |
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| Company owns more than one bank |
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| Interest rate bank charge each other for loans |
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| Interest rate Federal Reserve charges commercial banks for loans |
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| Deposits bank keeps readily available |
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| Amount reserves banks keep on hand |
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Definition
| Federal Reserve System policy to influence real GDP and rate of inflation |
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