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6 Cards in this Set
- Front
- Back
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Money creation |
The process by which money enters into circulation |
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Required reserve ratio |
Ratio of reserves to deposits required of banks by the Federal Reserve |
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Money multiplier formula |
Amount of new money that will be created with each demand deposit calculated as 1÷RRR |
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Excess Reserves |
Reserves greater than the required amounts |
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Prime rate |
Rate of interest banks charge on short term loans to their best customers |
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Open market operations |
The buying and selling of government securities to alter the supply of money |
