Reading...
Play button
Play button
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;
9 Cards in this Set
- Front
- Back
|
Monetary Policy
|
Refers to actions that the Federal reserve System takes to change interest rates and the money supply. It is aimed at affecting the economy.
|
|
|
Central Bank
|
A bank for banks. The US central bank is the Federal Reserve System
|
|
|
Central Bank Independence
|
Refers to the central bank's ability to make decisions without political interference
|
|
|
Open- Market operations
|
Refer to the Fed's purchases or sales of government securities, normally Treasury bills, through transaction in the open market.
|
|
|
Federal Funds Rate
|
The interest rates that banks pay and receive when they borrow reserves from one another
|
|
|
Risk of Default
|
The risk that the borrow may not pay in full or on time on any loan or security.
|
|
|
Risk Premium
|
To compensate the lender for the probability of loss if the borrower fails to repay the loan in full or on time.
|
|
|
Discount Rate
|
The interest rate the Fed charges on loans that it makes to banks.
|
|
|
Quantitative Easing
|
Refers to open-market purchases of assets other than treasury bills
|
