Term
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Definition
| a highly liquid financial asset that's generally accepted in exchange for other goods, is used as a reference in valuing other goods, and can be stored as wealth. |
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Term
| Federal Reserve Bank (FED) |
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Definition
| the U.S. central bank, whose liabilities (Federal Reserve notes) serve as cash in the United States. |
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Term
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Definition
| a financial institution whose primary function is accepting deposits for, and lending money to, individuals and firms. |
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Term
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Definition
| how a bank handles its loans and other assets. |
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Term
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Definition
| how a bank attracts deposits and what it pays for them. |
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Term
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Definition
| currency and deposits a bank keeps on hand or at the Fed or central bank, to manage the normal cash inflows and outflows. |
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Term
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Definition
| the ratio of reserves to total deposits. |
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Term
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Definition
| the measure of the amount of money ultimately created per dollar deposited in the banking system, when people hold no currency. (1/r) |
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Term
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Definition
| reserves held by banks in excess of what banks are required to hold. |
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Term
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Definition
| the need to hold money for spending. |
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Term
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Definition
| holding money for unexpected expenses and impulse buying. |
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Term
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Definition
| holding cash to avoid holding financial assets whose prices are falling. |
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Term
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Definition
| currency in the hands of the public plus checking account balances. |
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Term
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Definition
| M,1 plus savings and money market accounts, small-denomination time deposits (also called CDs), and retail money funds. |
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