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12 Cards in this Set
- Front
- Back
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Federal Open Market Committee (FOMC)
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the major monetary policy making body of the Federal Reserve System
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Open market operations
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purchases and sales of US Government and federal agency securities by the Federal Reserve
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Discount rate
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the interest rate on loans made by the Federal Reserve banks to depository institutions
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Discount window
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the facility through which Federal Reserve Banks issue loans to depository institutions
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Reserves
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depository institution’s vault cash plus reserves deposited at Federal Reserve Banks
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Monetary base
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currency in circulation and reserves held by the Federal Reserve (depository institution reserves and vault cash of commercial banks)
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Required reserves
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reserves the Federal Reserve requires banks to hold
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Excess reserves
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additional reserves banks choose to hold
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Fed Funds Rate
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the interest rate on short term funds transferred between financial institutions usually for a period of 1 day
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Federal Reserve Board Trading Desk
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unit of the Federal Reserve Bank of New York through which open market operations are conducted
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Policy directive
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statement sent to the Federal Reserve Board Trading Desk from the FOMC that specifies the money supply target
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Repurchase agreements
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open market transactions in which the trading desk purchases government securities with an agreement that the seller will repurchase them within a stated period of time
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