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Related Flashcards
Cards In This Set
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Central bank
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Nation's main monetary authority
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Monetary
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Term: "relating to money"
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Federal Reserve System
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The central bank of the U.S.
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Currency
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Coins and paper money
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Board of Governors
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Supervises the operations of the Fed
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Federal Open Market Committee
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Supervises the sales and purchase of gov securities
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Thrift institution
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A financial institution that serves savers
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Check clearing
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Service offered by the FEd to record receipts and expenditures of bank clients
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Bank holding company
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Owns or has a controlling interst in more than one bank
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Bank exam
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Audit of the bank's financial practices
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Required reserve ration (RRR)
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The fraction of a bank
s deposits that it must keep in reserve |
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Deposit multiplier formula (1/RRR)
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Tells how much the money supply will increase after an initial cash deposit
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Monetary policy
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Includes the Fed's actions that change the money supply to influence the economy
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Open market operations
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Sales and purchase of federal gov securities
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Federal funds rate (FFR)
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Interest rate that banks charge one another to borrow money
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