Term
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Definition
| a situation in which many depositors simultaneously decide to withdraw money from a bank |
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Term
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Definition
| a situation in which many banks experience runs at the same time |
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Term
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Definition
| the central bank of the United States |
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Term
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Definition
| the actions the Federal Reserve takes to manage the money supply and interest rates to pursue macroeconomic policy objectives |
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Term
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Definition
| the buying and selling of Treasury securities by the Federal Reserve in order to control the money supply |
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Term
| Federal Open Market Committee (FOMC) |
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Definition
| the Federal Reserve committee responsible for open market operations and managing the money supply in the United States |
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Term
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Definition
| loans the Federal Reserve makes to banks |
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Term
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Definition
| the interest rate the Federal Reserve charges on discount loans |
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Term
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Definition
| the interest rate banks charge each other for overnight loans |
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Term
| Expansionary Monetary Policy |
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Definition
| the Federal Reserve's increasing the money supply and decreasing interest rates to increase real GDP |
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Term
| Contractionary Monetary Policy |
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Definition
| the Federal Reserve's adjusting the money supply to increase interest rates and reduce inflation |
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