Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
6 Cards in this Set
- Front
- Back
Money creation |
The process by which money enters into circulation |
|
Required reserve radio(RRR) |
Ratio of reserves to deposits required of banks by the federal reserve |
|
Money multiplier formula |
Amount of new money that will be created with each demand deposit, calculated as 1/RRR |
|
Excess reserves |
Reserves greater than the required amounts |
|
Prime rate |
Rate of interest banks charge on short term loans to their best customers |
|
Open market operations |
The buying and selling of government securities top alter the supply of money |