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a statement of the assets, liabilities, and net worth of a firm or individual at some given time
a reserve requirement that is less than 100 percent of the checkable-deposit liabilities of a commercial bank or thrift institution
fractional reserve system
the currency a bank has in its vault and cash drawers
the funds that banks and thrifts must deposit with the Federal Reserve Bank (or hold as vault cash) to meet the legal reserve requirement; a fixed percentage of the bank's or thrift's checkable deposits
the "specified percentage" of checkable deposit liabilities that a commercial bank must keep as reserves; the ratio of the required reserves the commercial bank must keep to the bank's own outstanding checkable deposit liabilities
the amount by which a bank's or thrift's actual reserves exceed its required reserves; actual reserves minus required reserves
the funds that a bank has on deposit at the Federal Reserve Bank of its district (plus its vault cash)
The interest rate banks and other depository institutions charge one another on overnight loans made out of their excess reserves
Federal funds rate
the multiple of its excess reserves by which the banking system can expand checkable deposits and thus the money supply by making new loans (or buying securities); equal to 1 divided by the reserve requirement
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