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
|
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)
|
