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| Answer |
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| Beige Book |
A consolidated report of regional economic conditions in each of the 12 Federal Reserve districts. |
| Board of Governors |
A body made up of seven individual members; also called the federal reserve board. |
| Defensive Open Market Operations |
Operations that offset the impact of other conditions on the level of reserves. |
| Depository Institutions Deregulation and Monetary Control Act (DIDMCA) |
A legal bill that deregulated some aspects of depository institutions and enhanced the Fed's ability to control the money supply. |
| Discount Rate |
The interest rate charged on Fed district bank loans to depository institutions. |
| Dynamic Open Market Operations |
Operations implemented to increase or decrease the level of reserves. |
| Federal Funds Rate |
The interest rate charged by banks on short term loans to each other. |
| Federal Open Market Committee (FOMC) |
A body made up of seven members of the Board of Governors and presidents of five district banks. |
| Federal Reserve District Banks |
Components of the Federal Reserve System; each bank is allowed to trade government securities. |
| M1 |
The most narrow form of money, including currency held by the public and checking deposits. |
| Policy Directive |
The document passed from the FOMC to the Trading Desk stating the FOMC's decision on the target money supply level. |
| Repurchase Agreement |
The purchase of securities with an agreement to sell them back at a specified date in the near future. |
| Reserve Requirement Ratio |
The proportion of depository institutions accounts that must be held as reserves. |
| Trading Desk (Open Market Desk) |
Open market operations are carried out here. |
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