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Definition
| an item that sellers generally accept and buyers generally use to pay for goods and services |
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Definition
| a standard measurement unit in terms of which prices can be stated and the relative value of goods and services compared |
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Definition
| an asset set aside to purchase items in the future |
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Definition
| the ease with which an asset can be converted into cash |
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Term
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Definition
| the most narrowly defined money supply, equal to currency (outside banks) plus the check-able deposits of commercial bank and thrift institutions |
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Definition
| paper bills issued by the federal reserve banks |
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Term
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Definition
| currency that has a face value greater than the materials used to produce it |
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Definition
| deposits in banks or thrifts against which checks may be written |
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Definition
| firms that engage in the business of banking (accepting deposits, offering checking accounts, and making loans) |
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Definition
| savings and loan associations, mutual savings banks, or credit unions that offer savings and checking accounts |
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Term
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Definition
| financial assets that do not directly serve as a medium of exchange but readily can be converted into narrowly defined money (currency + check-able deposits) |
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Term
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Definition
| a more broadly defined money supply, equal to M1 plus non-check-able savings accounts (including money market deposit accounts), time deposits of less than $100,000, and individual money market mutual fund balances |
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Term
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Definition
| an interest-earning account (at a bank of thrift) from which funds normally can be withdrawn at any time |
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Term
| money market deposit account (MMDA) |
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Definition
| an interest-earning account (at a bank of thrift) consisting of short-term securities and on which a limited number of checks can be written each year |
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Term
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Definition
| an interest-earning deposits (at a bank of thrift) such as certificates of deposit (CDs) that depositors can withdraw without penalty after the end of a specified period |
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Term
| money market mutual fund (MMMF) |
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Definition
| an interest-earning account at an investment company, which pools the funds of depositors to purchase short-term securities |
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Term
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Definition
| a legal designation of a nation's official currency (bills and coins) |
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Definition
| a central component of the U.S. banking system, consisting of the board of governors of the federal reserve and 12 regional federal reserve banks |
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Term
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Definition
| the seven-member group that supervises and controls the money and banking system of the united states; the board of governors of the federal reserve system; the federal reserve board |
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Term
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Definition
| the 12 banks chartered by the U.S. government to control the money supply and perform other functions (central banks, quasi-public bank, and bankers' bank) |
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Term
| federal open market committee (FOMC) |
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Definition
| the 12-member federal reserve group that determines the purchase and sale policies of the federal reserve banks in the market for U.S. government securities |
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Term
| fractional reserve banking system |
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Definition
| a banking system in which banks and thrifts are required to hold less than 100 percent of their check-able-deposit liabilities as cash reserves |
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Term
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Definition
| a statement of the assets, liabilities, and net worth of a firm, individual, or institution at some time |
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Term
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Definition
| the funds that banks and thrifts must deposit with the federal reserve bank (or hold as vault cash) to meet the fed's reserve requirement |
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Term
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Definition
| the legally required percentage of reserves for every $1 of a bank or thrift's check-able deposits |
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Term
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Definition
| actual bank of thrift reserves minus legally required reserves |
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Term
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Definition
| the funds that a bank of thrift has a deposit at a federal reserve bank or is holding as vault cash |
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Term
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Definition
| the multiple of its excess reserves by which the banking system can expand check-able deposits and thus the money supply by making new loans |
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