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6 Cards in this Set
- Front
- Back
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Money creation |
Process by which money enters in circulation |
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Required reserve ratio (RRR) |
Rates of reserves to deposits required of banks by federal reserves |
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Money multiplier formula |
Amount of new money that will be created with each demand deposit, calculated as 1/RRR |
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Excess reserve |
Reserves greater than the required amounts |
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Prime rate |
Rates of interest banks change of short-term loans to their best consumers |
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Open market operations |
Buying and selling of government securities to alter the supply of money |
