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9 Cards in this Set

  • Front
  • Back
fractional reserve banking system
a reserve requirement that is less than 100 percent of the checkable-deposit liabilities of a commercial bank or thrift institution
balance sheet
a statement of assets and claims on assets that summarizes the financial position of the bank at a certain time
vault cash
cash held by the bank; till money
required reserves
an amount of funds equal to a specified percentage of the bank's own deposit liabilities
reserve ratio
the ratio of the required reserves the commercial bank must keep to the bank's own outstanding checkable-deposit liabilities
excess reserves
found by subtracting a bank's required reserves from its actual reserves
actual reserves
the funds that bank has on deposit at the Federal Reserve Bank of its district (plus its vault cash)
Federal funds rate
the interest paid on overnight loans
monetary multiplier
the multiple of its excess reserves by which the banking system can expand checkable deposits and thus the money supply by making new loans (or buying securities)