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Vocab for Macro

TermDefinition
Central bank Another word for the FED in the U.S.
Commodity money A form of money with intrinsic value
Demand deposits Checking accounts.
Discount rate The rate the FED charges banks for loans
Federal funds rate The overnight rate banks charge each other
Fiat money A form of money with only symbolic value
Liquidity How easily money can be turned into cash
M1 This is what we mean by the money supply
Medium of exchange Money used to buy goods or services
Open market operations The buying and selling of bonds
Reserve requirement The percentage of deposits a bank must keep
Securities Another word for bonds or IOUs
Store of value Money used to maintain its value
Unit of account Money used to measure the value of something
Excess Reserves the cash held by a bank or other financial institution above the reserve requirement that an authority sets
Created by: user-1934603
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