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19 Cards in this Set
- Front
- Back
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What does FOMO mean |
Federal open market operations |
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What policy does FOMO use |
Monetary policy |
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Three main functions of the federal reserve |
Banking system is safe and sound provides financial in payment services promotes a healthy economy using several monetary tools |
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List three main monetary tools used by the feds |
Federal open market operation reserve requirement discount rate |
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What does Federal open market operations mean |
The buying and selling of government securities (loans and bonds) |
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What does the reserve requirement mean |
Certain amount of money the banks cannot use and less emergencies |
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What does discount rate mean |
The money the Federal Reserve charges other banks |
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What happens when the federal economy > sell securities |
Slows the economy |
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What happens when the federal economy > buy securities |
Stimulates the economy |
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What happens if the federal economy > increases discount rate |
Slows the economy |
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What happens if the federal economy > increases reserve requirement |
Slow the economy |
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What happens if the federal economy > decreases reserve requirement |
Stimulates the economy |
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What happens if the federal economy decreases > reserve requirement |
Stimulates the economy |
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What happens to the federal money supply when > sell securities |
Decrease |
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What happens to the Federal money supply > buy securities |
Increase |
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What happens to the federal money supply when > increase discount rate |
Decrease |
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What happens to the federal my supply when > decrease discount right |
Increase |
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What happens to the federal my supply when > increase reserve requirement |
Decrease |
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What happens to the federal money supply when> decrease reserve requirement |
Increase |
