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Definition
| anything customarily used as a medium of exchange, unit of accounting, and store of value |
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Term
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| policy that involves changing the rate of growth of the supply of money in circulation in order to affect the cost and availability of credit. |
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| ups and downs in an economy |
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| irregular changes in the level of total output measured by real GDP |
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| part of the business cycle in which economic activity is slowing down |
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| lowest part of the business cycle in which the downward spiral of the economy levels off |
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| part of the business cycle in which economic activity slowly increases |
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| period of prosperity in a business cycle in which activity is at its highest point |
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| part of the business cycle in which the nation’s output declines for at least six months |
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Definition
| major slowdown of economic activity |
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| part of the business cycle in which the nation’s output returns to its previous level of growth |
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| part of the business cycle in which the nation’s output actually grows (expands) beyond prior levels |
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Definition
| statistics that measure variables in the economy |
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| statistics that point to what will happen in the economy |
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| economic indicators that usually change at the same time as changes in overall business activity |
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| indicators that seem to lag behind changes in overall business activity |
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| the branch of economic theory dealing with the economy as a whole and decision making by large units such as governments. |
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Definition
| attempts by the federal government to keep the economy healthy; includes monetary and fiscal policies. |
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Definition
| federal government’s use of taxation and spending policies to affect overall business activity. |
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Term
| Expansionary Monetary Policy (loose money) |
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Definition
| monetary policy action that makes credit inexpensive and abundant, possibly leading to inflation. |
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Term
| Contractionary Monetary Policy (tight money) |
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Definition
| monetary policy action that makes credit expensive and in short supply in an effort to slow the economy, possibly leading to recession. |
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Term
| Expansionary Fiscal Policy |
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Definition
| federal government actions involving using taxing and spending policies to speed up the economy and avoid a recession and high unemployment. |
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Term
| Contractionary Fiscal Policy |
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Definition
| federal government actions involving using taxing and spending policies to slow the economy and avoid inflation and loss of purchasing power. |
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Definition
| the federal reserve system created by Congress in 1913 as the nation’s central banking organization |
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Term
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Definition
| directs the operations of the Federal Reserve System |
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Term
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Definition
| reports on the general business conditions in the nation |
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Term
| Federal Open Market Committee |
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Definition
| decides the actions to be taken by the Fed to control the money supply |
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Term
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Definition
| buying and selling of U.S. securities by the Fed to affect the money supply |
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Term
| Federal Reserve Banks (District Banks) |
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Definition
| the main operating headquarters for the Fed in each district |
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Term
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Definition
| banks within the district that assist the district banks in their operations (2nd in command) |
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Term
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Definition
| all local banks that belong to the Federal Reserve System |
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Term
| Fractional Reserve Banking |
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Definition
| system in which only a fraction of the deposits in a bank is kept on hand, or in reserve, the remainder is available to lend. |
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Term
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Definition
| regulations set by the Fed requiring banks to keep a certain percentage of their deposits as cash in their own vaults or as deposits in their Federal Reserve district bank |
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Term
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Definition
| interest rate that the Fed charges on loans to member banks |
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Term
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Definition
| interest rate that banks charge each other for loans |
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Term
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Definition
| rate of interest that banks charge on loans to their best business customers |
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