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26 Cards in this Set
- Front
- Back
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Barter |
The direct exchange of goods and services for other goods and services |
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Commodity monies |
Items used as money that also have intrinsic value in some other use |
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Currency debasement |
The decrease in the value of money that occurs when it's supply is increased rapidly |
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Discount rate |
The interest rate that banks pay to the Fed to borrow from it |
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Excess reserves |
The difference between banks actual reserves and it's required reserves |
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Excess reserves |
The difference between banks actual reserves and it's required reserves |
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Federal open market committee |
Set goals concerning the money supply in New York |
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Excess reserves |
The difference between banks actual reserves and it's required reserves |
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Federal open market committee |
Set goals concerning the money supply in New York |
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Federal reserve bank |
The central bank of the US |
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Fiat or token money |
Items designated as money that are worthless |
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Fiat or token money |
Items designated as money that are worthless |
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Financial intermediaries |
Banks and other institutions that act as a link between those who have money yo mend those who want to borrow money |
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Legal tender |
Money that a gov has required to be accepted in a settlement of debt |
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Lender or last resort |
One of the functions of the Fed. It's provides funds to trouble banks that cannot find any other sources of funds |
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Liquidity property of money |
Property of money that makes it a good medium of exchange as well as a store of value, portable and readily accepted and thus easily exchange for goods |
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M1 or transitions of money |
Money that can be directly used for transactions |
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M2 or broad money |
M1 plus savings accounts, make good market accounts and other near monies |
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M2 or broad money |
M1 plus savings accounts, make good market accounts and other near monies |
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Medium of exchange |
What sellers generally accept and buyers generally use to pay for goods and services |
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Money multiplier |
The multiple by which deposits can increase for every dollar increase in reserves, equal to 1 divide but the required reserve ratio |
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Open market desk |
Office in NY federal reserve bank form which gov securities are bought and sold by the Fed |
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Required reserve ratio |
The percentage of its total deposits that a bank must keep as reserves at the federal reserve |
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Reserves |
The deposits that a bank has at the federal reserve bank plus it's cash on hand |
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Store of value |
An asset that can be used to transport purchasing power from one time period to another |
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Unit of account |
A standard unit that provides a consistent way of quoting prices |
