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31 Cards in this Set

  • Front
  • Back
A banking system in which banks hold only a fraction of deposits as reserves
fractional-reserve banking
paper bills and coins in the hands of the public
the function of money when used to transfer purchasing power to the future
store of value
the interest rate the fed charges on loans to banks
discount rate
trading goods and services directly for goods and services
the fuction of money when used as a yardstick to post prices and record debts
unit of account
money in the form of a commodity with intrinsic value
commodity money
the central bank of the United States
federal Reserve
the set of assets generally accepted in trade for goods and services
the fraction of deposits held as reserves
reserve ratio
reserves held beyond the minimum reserve requirement
excess reserves
the quantitiy of money in the economy
money supply
money without intrinsic value
fiat money
the function of money when used to purchase goods and services
medium of exchange
the purchase and sale of U.S government bonds by the Fed
open-market operations
The accident that two people bartering have what the other wants
double coincidence of wants
the minimum legal percent of deposits that banks must hold as reserves
reserve requirements
decisions by the central bank concerning the money supply
monetary policy
balances in bank accounts that can be accessed on demand by check
demand deposits
the amount of money the banking system generates from each dollar of reserves
money multiplier
the monetary policy committee within the federal reserve
Federal Open Market Committee
an institution designed to regulate the banking system and money supply
central bank
the ease with which an assest can be converted into the economy's medium of exchange
deposits that banks have recieved but have not lent out
cash held by the public + demand deposits
M1 + money farket funds + savings deposits + small time deposits
M2 + large time deposits
Are credit cards money?
Are debit cards money?
Current Chairman of FED
Ben S. Bernanke
How many district banks are there?