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Federal Reserve Bank
Federal Reserve Bank Key Terms
Term | Definition |
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BOND | A promise to repay the full amount of a debt plus periodic interest that is sold to investors by institutions. The U.S. government sells savings bonds with guaranteed repayment of value plus interest. |
CENTRAL BANK | A country's main bank run by the government, responsible for issuing money and regulating monetary policy. Ex; Federal Reserve Bank |
FACE VALUE | The monetary value printed on the front of a bond. |
FEDERAL RESERVE | The central bank of the United States; a bank that the U.S. government uses for loans and other banking needs. |
FIAT MONEY | Money with no intrinsic value; it is not backed by anything of intrinsic value (such as a brick of gold). |
INTEREST RATE | The percentage paid, or charged, for borrowed money. |
MONETARY POLICY | The government's policy for regulating money supply and credit in the economy. |
MONEY SUPPLY | The total amount of money in circulation: all bills, coins, credit, and loans that are held by the public and banks. |
OPEN MARKET REGULATION | The purchase and sale of U.S. Treasury and other federal agency securities. |
RESERVE RATE | The amount of funds that a bank must hold in reserve. The rate is given as a percentage of the total deposits. |
SECURITIES | A generic term for a wide array of investment items. Ex; Stocks & Bonds |
TREASURY BOND | A long-term, high-interest investment issued by the U.S. government. |