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government
| Question | Answer |
|---|---|
| Central Bank | Depository for a nations funds |
| Check Clearing | method of crediting and debiting your account |
| Member bank | Federal reserve system associate |
| Money supply | amount of cash in circulation |
| Monetary policy | program of the Federal Reserve Board designed to control the nations money supply and credit |
| easy-money policy | expansions of the money supply by the Federal Reserve to increase aggregate demand promote economic growth |
| tight-money policy | restriction of the money supply and the use of credit by the Federal Reserve to reduce the primary cause of demand pull inflation and stabilize prices |
| Reserve requirement | percentage of money deposited in checking and savings accounts that must be held by banks either in th;air own vaults or at the district federal banks |
| discount rate | interest that the federal reserve charges member banks for the use of its money |
| prime rate | interest that a bank charges on loans to its business customers |
| open market operation | buying and selling of government securities by the Federal Reserve |
| Moral suasion | unofficial pressure that the federal reserve exerts on the banks system to channel its lending policies in the desirable direction |
| margin requirement | percentage of cash required if an investor to the buy stocks, options, warrants and convertible bonds |
| panic of 1907 | caused the collapse of banks and endangered the entire monetary system |
| Federal Reserve act | an agreement passed by congress in 1913 which created a central bank now know as the Federal reserve system |