Shared Flashcard Set

Details

Elements of Econ Banking/Monetary Policy
Banking in the United States: Financial Intermediation/ Monetary Policy
13
Economics
Undergraduate 3
11/27/2012
Click here to study/print these flashcards.

Create your own flash cards! Sign up here.

Additional Economics Flashcards

 

 

Cards

Term
T accounts for commercial banks include:
 Definition

-liabilities on the right

-assets of a commercial bank on the left
Term
What falls under Liabilities in T Accounts for commercial banks?
 Definition

-Deposits

-Equity (value of a shareholder's equity)
Term
What is included under assets in T Accounts for commercial banks?
 Definition

-Reserves (required & excess)

-Loans

-Securities
Term
Why are banks considered intermediaries?
 Definition
They take savings from other parts of the economy and channel it into investment
Term
Types of Intermediaries
 Definition

-Commercial banks

-Savings and loan associations

-Savings banks and credit unions

-Money market mutual funds
Term
What is the principal financial intermediary?
 Definition
Commercial banks
Term
Nickname for money market mutual funds
 Definition
"shadow banks"
Term
Money Market Mutual Fund
 Definition
minimally regulated commercial banks with a much larger scale-- basic operation is not much different
Term
Net Worth
 Definition
the difference between assets and liabiities
Term
Banks divide their funds into two parts:
 Definition

-Reserve

-Loans
Term
Reserve (bank's funds)
 Definition
cash in a bank's vault plus its deposits at Federal Reserve banks
Term
How much do banks hold in their deposits as a reserve?
 Definition
10%
Supporting users have an ad free experience!