Term
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Definition
| The set of assets in an economy that people regularly use to buy goods and services from other people |
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Term
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Definition
| An item that buyers give to sellers when they want to purchase goods and services |
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Definition
| The yardstick people use to post prices and record debts |
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Definition
| An item that people can use to transfer purchasing power from the present to the future |
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Definition
| The ease with which an asset can be converted into the economy's medium of exchange |
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Term
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Definition
| Money that takes the form of a commodity with intrinsic value |
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Term
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Definition
| Money without intrinsic value that is used as money because of government decree |
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Term
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Definition
| The paper bills and coins in the hands of the public |
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Term
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Definition
| Balances in bank accounts that depositors can access on demand by writing a check |
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Term
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Definition
| The central bank of the United States |
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Term
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Definition
| An institution designed to oversee the banking system and regulate the quantity of money in the economy |
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Term
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Definition
| The quantity of money available in the economy |
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Term
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Definition
| The setting of the money supply by policymakers in the central bank |
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Term
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Definition
| Deposits that banks have received but have not loaned out |
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Term
| Factional-Reserve Banking |
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Definition
| A banking system in which banks hold only a fraction of the deposits as reserves |
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Term
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Definition
| The fraction of deposits that banks holds as reserves |
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Term
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Definition
| The resources a bank's owners have to put into the institution |
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Term
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Definition
| The use of borrowed money to supplement existing funds for the purposes of investment |
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Term
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Definition
| The ratio of assets to bank capital |
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Term
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Definition
| A government regulation specifying a minimum amout of bank capital |
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Term
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Definition
| The purchase and sale of U.S. government bonds by the Fed |
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Term
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Definition
| The interest rate on the loans that the Fed makes to banks |
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Term
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Definition
| Regulations on the minimum amount of reserves that the bank must hold against deposits |
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Term
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Definition
| The interest rate at which banks make overnight loans to one another |
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Term
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Definition
The amount of money the banking system generates with each dollar of reserves
1
___________
Reserve |
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