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16 Cards in this Set
- Front
- Back
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the money market |
short term, high quality debt Negotiable CDs, commercial paper, banker's acceptances, and T-bills |
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Economic policy types |
-Fiscal policy -Monetary policy |
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fiscal policy |
taxing and spending by the president and congress |
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monetary policy |
anti-inflation efforts implemented by the federal reserve |
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Monetary policy: Reserve requirement |
required deposits by blanks; higher tightens, lower loosens money supply |
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Monetary policy: discount rate |
interest charged to banks in trouble; higher tightens, lower loosens money supply |
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Monetary policy: Federal open market committee FOMC sells securities to ______________ and buys securities to ____________ money supply |
- tighten - loosen |
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Measures of the economy |
-Gross Domestic Product GDP -Consumer price index CPI |
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Gross domestic product GDP |
total output of goods and services in one year |
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Consumer price index CPI |
measures rate of gain or loss in the dollar's buying power. Best inflation measure |
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interest rates |
-Prime rate -Broker call loan rate -Federal funds rate -Discount rate |
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Prime rate charged by |
commercial banks to best corporate customers
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Broker call loan rate charged by |
banks for margin loans |
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Federal funds rate charged by |
banks to each other for overnight loans |
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Discount rate charged by |
Federal Reserve to banks in trouble |
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Currency rates |
Exporters want own currency to be weak Importers want own currency to be strong |
