Econ Chpt 16 Vocab
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Board of Governors
The seven-member board that oversees the federal reserve system.
The actions the Federal Reserve takes to influence the level of real GDP and the rate of inflation in the economy.
Federal Reserve Districts
The twelve banking districts created by the Federal Reserve Act.
Federal Advisory Council (FAC)
The research arm of the Federal Reserve.
Federal Open Market Committee (FOMC)
Federal Reserve committee that makes key decisions about interest rates and the growth of the United States money supply.
The process by which banks record whose account gives up money and whose account receives money when a customer writes a check.
Bank Holding Company
A ompany that owns more than one bank.
Federal Funds Rate
Interest rate banks charge each other for loans.
Rate the Federal Reserve charges for loans to commercial banks.
Total assets minus total liabilities.
The process by which money enters into circulation.
Required Reserve Ratio (RRR)
Ratio of reserves to deposits required of banks by the Federal Reserve.
Money Multiplier Formula
Amount of new money that will be created with each demand deposit, calculated as 1 divided by RRR.
Reserves greater than the required amounts.
Rate of interest banks charge on short-term loans to their best customers.
Open Market Operations
The buying and selling of government securities to alter the supply of money.
The belief that the money supply is the most important factor in macroeconomic performance.
Easy Money Policy
Monetary policy that increases the money supply.
Tight Money Policy
Monetary policy that reduces the money supply.
Delay in implementing monetary policy.
The time it takes for monetary policy to have an effect.
Econ Chpt 16 Vocab
Econ Chpt Vocab Quiz
Words and defs for Econ chpt 16 vocab quiz.