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14 Cards in this Set
- Front
- Back
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Money |
the set of assets in an economy that people regularly use to buy goods and services from other people |
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Medium of exchange |
an item that buyers give to sellers when they want to purchase goods and services |
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Unit of account |
the yardstick people use to post prices and record debts |
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Store of value |
an item that people can use to transfer purchasing power from the present to the future |
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Liquidity |
the ease with which an asset can be converted into the economy's medium of exchange |
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M1 and M2 |
The most commonly used measures of money stock |
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Credit Cards |
Excluded from all measures of the quantity of money because they aren't considered a method of payment, but rather a method of deferring payment |
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Federal Reserve Bank |
the central bank of the United States |
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Board of Governors of the Federal Reserve Bank |
Runs the Fed and is made up seven members appointed by the president, and confirmed by the senate. |
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Chairman of the Board of Governors of the Federal Reserve Bank |
Directs the Fed staff, presides over board meetings, and testifies regularly about Fed policy in front of congressional committees. Serves a 4 year term |
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Regional Federal Reserve Banks |
Twelve smaller branches of the Federal Reserve Bank, with presidents chosen by each bank's board of directors, whose members are typically drawn from the region's banking and business community |
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Reserve Ratio |
the fraction of deposits that banks hold as reserves |
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Reserves |
Deposits that banks have received but have not loaned out |
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Discount rate |
the interest rate on the loans that the Fed makes to banks |
