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16-2 Vocabulary jw

QuestionAnswer
What services does the FED provide to the banking system? Check clearing Lending Money Regulating and supervising banks
What services does the Fed perform for the government? Pays government bills, sells governement securities, and distributes currency.
Is a service offered by the Fed to record reciepts and expenditures of bank clients. Check clearing
Owns, or has a controlling interest in more than one bank. Bank holding company
An audit of the bank's financial practices. bank exam
Is the fraction of a bank's deposits that it must keep in reserve. Required reserve ratio (RRR)
Tells how much the money supply will increse after the initial cash deposit. Deposit multiplier formula
What factors affect demand for money? Cash on hand, interest rates, cost of consumer goods & services, level of income.
Created by: joannw15
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