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7 Cards in this Set
- Front
- Back
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fractional reserve banking
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a system in which depository institutions hold reerves that are less than the amount of total deposits
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reserves
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in teh US federal reserve system, deposits held by federal reserve district bankds for depository institutions.
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legal reserves
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reserves that depository institutions are allowed by law to claim as reserves.
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required reserves
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the value of reserves that a depository institution must hold in the form of vault cash or deposits with the def
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required reserve ratio
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the percentage of total deposits that the Fed requires deportisstory institutions to hold in the form of vault cash or deposits with the fed
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excess reserves
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the difference between legal reserves and required reserves
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open market operations
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the purchase and sale of existing US government securities (such as bonds) in the open private market by the federal reserve system.
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