ECON CH14

Card Set Information

Author:
riana143
ID:
258311
Filename:
ECON CH14
Updated:
2014-01-25 14:04:52
Tags:
econ
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Description:
econ vocab
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  1. a statement of the assets, liabilities, and net worth of a firm or individual at some given time
    balance sheet
  2. a reserve requirement that is less than 100 percent of the checkable-deposit liabilities of a commercial bank or thrift institution
    fractional reserve system
  3. the currency a bank has in its vault and cash drawers
    vault cash
  4. 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
    required reserves
  5. 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
    reserve ratio
  6. the amount by which a bank's or thrift's actual reserves exceed its required reserves; actual reserves minus required reserves
    excess reserves
  7. the funds that a bank has on deposit at the Federal Reserve Bank of its district (plus its vault cash)
    actual reserves
  8. The interest rate banks and other depository institutions charge one another on overnight loans made out of their excess reserves
    Federal funds rate
  9. 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
    monetary multiplier

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