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23 Cards in this Set
- Front
- Back
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Although the united states has the worlds largest economy, US banks are not as large by -----------
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international standards
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Another difference between the US banking industry and those in most other countries is that the US banking industry has what?
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an enormous number of banking firms
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Another difference between the US banking industry and those in most other countries is the US banking industry traditionally has been much less ------- as that in other countries.
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concentrated
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The United states does not have more bank offices, including branches per capita, only more separately owned -------- ------ ----- ----.
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banking firms per capita
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after examination a bank receives what type of rating?
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CAMELS
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CAMELS stands for what?
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capital, asset quality, management, earnings, liquidity, and sensitivity to market risk
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a sequence of events that causes people to fear that their bank will probably not be able to repay them in full, many (if not all) of the depositors rush to the bank to get their money back.
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Bank run.
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a bank run forces a bank to do what?
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close it's doors
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the spreading of bad news about one bank to include other banks is known as
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contagion
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created by congress in 1913 to promote stability in the banking industry by serving as a lender of last resort during banking crises.
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federal reserve system (fed)
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known as a banker's bank which serve as an ultimate source of credit to which banks could turn during a panic.
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lender of last resort
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the lender of last resort advances credit to solvent banks using a bank's good, but illiquid, loans as ------ .
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collateral
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# A seven-member Board of Governors, who set monetary policy,
# A 12 member Federal Open Market Committee (FOMC) who sets the Fed Funds Rate to be charged by Federal Reserve Banks. All Board members sit on the FOMC. # Twelve district banks located throughout the U.S. # Staff economists who provide reports including the Beige Book and the Monetary |
4 components of the federal reserve system
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one of the 12 banks that make up the Federal Reserve System. Each District Bank is responsible for all banking activity in its area.
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federal reserve district bank
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Each district bank has a board of directors consisting of ----- members.
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nine
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The Federal Reserve Act required all ------- ------- to become member banks.
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national banks
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------ --------- were given the choice of whether or not to become members.
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state banks
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The Board of Governors is composed of ------- members appointed by the ------- and confirmed by the U.S. ------.
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7, president, senate
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how long do members of the board of governors serve?
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14 year non renewable terms
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the board of governors administrates
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monetary policy
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is composed of 12 members and directs the Fed’s open market operations.
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The Federal Open Market Committee
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The fed influences the monetary base primarily through --------- ------ -----
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open market operations
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The FOMC is the -------- of fed policy making.
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center piece
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