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14 Cards in this Set
- Front
- Back
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Required reserves-
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The minimum amount of reserves that the Fed requires depository institutions to hold.
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Required-reserve ratio-
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Required reserves stated as a percentage of hte deposits to which reserve requirements apply.
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Excess reserves-
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Total reserves minus required reserves.
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Open market operation-
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A purchase (sale) by the Fed of government securities from (to) the public.
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Money multiplier-
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The ratio of the equilibrium money stock to the banking system's total reserves.
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Federal funds market-
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A market in which banks lend reserves to one another for periods as short as 24 hours.
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Federal funds rate-
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The interest rate on overnight loans of reserves from one bank to another.
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Federal funds rate target-
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The Fed's target for the federal funds rate, announced by the Federal Open Market Committee (FOMC).
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Discount window-
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The department through which the Federal Reserve lends reserves to banks.
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Discount rate-
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The interest rate charged by the Fed on loans of reserves to banks.
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Foreign-exchange market-
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A market in which the currency of one country is traded for that of another.
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Appreciate-
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A currency is said to appreciate if its value increases relative to the currency of another country.
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Depreciate-
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A currency is said to depreciate if its value decreases relative to the currency of another country.
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Sterilization-
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A monetary operation by a central bank intended to offset the effect on the domestic money stock of intervention in the foreign exchange market.
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