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31 Cards in this Set
- Front
- Back
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A banking system in which banks hold only a fraction of deposits as reserves
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fractional-reserve banking
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paper bills and coins in the hands of the public
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currency
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the function of money when used to transfer purchasing power to the future
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store of value
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the interest rate the fed charges on loans to banks
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discount rate
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trading goods and services directly for goods and services
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Barter
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the fuction of money when used as a yardstick to post prices and record debts
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unit of account
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money in the form of a commodity with intrinsic value
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commodity money
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the central bank of the United States
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federal Reserve
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the set of assets generally accepted in trade for goods and services
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money
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the fraction of deposits held as reserves
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reserve ratio
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reserves held beyond the minimum reserve requirement
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excess reserves
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the quantitiy of money in the economy
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money supply
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money without intrinsic value
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fiat money
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the function of money when used to purchase goods and services
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medium of exchange
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the purchase and sale of U.S government bonds by the Fed
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open-market operations
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The accident that two people bartering have what the other wants
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double coincidence of wants
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the minimum legal percent of deposits that banks must hold as reserves
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reserve requirements
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decisions by the central bank concerning the money supply
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monetary policy
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balances in bank accounts that can be accessed on demand by check
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demand deposits
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the amount of money the banking system generates from each dollar of reserves
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money multiplier
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the monetary policy committee within the federal reserve
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Federal Open Market Committee
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an institution designed to regulate the banking system and money supply
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central bank
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the ease with which an assest can be converted into the economy's medium of exchange
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liquidity
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deposits that banks have recieved but have not lent out
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Reserves
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cash held by the public + demand deposits
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M1
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M1 + money farket funds + savings deposits + small time deposits
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M2
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M2 + large time deposits
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M3
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Are credit cards money?
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NO
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Are debit cards money?
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yes
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Current Chairman of FED
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Ben S. Bernanke
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How many district banks are there?
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12
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