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Definition
| bank deposits that allow the account owner to write checks to third parties; ATM or debit cards can also access these deposits and transmit them electronically |
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Definition
| measures of the economy's money supply |
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| The narrow measure of the money supply, consisting of currency and coins held by the nonbanking public, checkable deposits, and traveler's checks |
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| Deposits that earn interest but have no specific maturity date |
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Definition
| deposits that earn a fixed interest rate if held for the specified period of time; which can range from several months to several years; also called certificates of deposit |
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| a money aggregate consisting of M1 plus savings deposits, small-denomination time deposits, and money market mutual funds |
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| cards that tap directly into the depositor's bank account to fund purchases; also called a check card, and often doubles as an ATM card |
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| a situation in which one side of the market has more reliable information than the other side |
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| assets minus liabilities; also called owner's equity |
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| a financial statement at a given point in time that shows assets on one side and liabilities and net worth on the other side; because assets must equal liabilities plus net worth, the two sides of the statement must be in balance |
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Definition
| anything of value that is owned |
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| anything that is owed to other people or institutions |
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| the dollar amount of reserves a bank is obligated by regulation to hold as cash in the bank's vault or an account at the Fed |
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Definition
| the ratio of reserves to deposits that banks are obligated by regulation to hold |
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Definition
| bank reserves exceeding required reserves |
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Definition
| a measure of the ease with which an asset can be converted into money without a significant loss of value |
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Definition
| a market for overnight lending and borrowing of reserves among banks; the interbank market for reserves on account at the Fed |
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Term
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Definition
| the interest rate charged in the federal funds market; the interest rate banks charge one another for overnight borrowing; the Fed's target interest rate |
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Definition
| the multiple by which the money supply changes as a result of a change in fresh reserves in the banking system |
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| the reciprocal of the required reserves ratio, or 1/r; the maximum multiple of fresh reserves by which the money supply can increase |
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| Electronic banking or e-banking |
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Definition
| electronic banking, or conducting banking transactions online |
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Definition
| the purchase of U.S. government bonds by the Fed to increase the money supply |
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Definition
| the sale of U.S. government bonds by the Fed to reduce the money supply |
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Term
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Definition
| the interest rate the Fed charges banks that borrow reserves |
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