Term
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Definition
| ability to convert into cash quickly and without loss of value in terms of cash |
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Term
| Primary vs Secondary Reserves |
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Definition
Primary Reserves: Cash & Federal Reserve Deposits
Secondary Reserves: Earning assets that can be converted into cash quickly and without loss of value |
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Term
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Definition
Cash & Federal Reserve Deposits
Securities
Loans |
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Term
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Definition
Marketable Securities
Callable Loans
Maturing Loans
Federal Funds
Brokered Deposits
Discounting
Profit |
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Term
| Contenporaneous Reserve Requirement: Reserve computation period |
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Definition
| Fourteen day period (Tuesday through Monday)which determines the amount of reserves needed |
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Term
| Contenporaneous Reserve Requirement: Reserve maintenance period |
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Definition
Fourteen day period (Thursday through
Wednesday) over which the daily average reserves of a depository institution must equal or exceed its required reserves |
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Term
| Secondary Reserves: Secondary Reserves provide liquidity for: |
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Definition
Unanticipated withdrawals
Increase in loan demand |
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Term
| Liquidity Management Policies: Asset Management |
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Definition
Real Bills Doctrine
Money Market Approach |
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Term
| Liquidity Management Policies: Liability Management |
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Definition
Repurchase Agreements
Discounting
Federal Funds |
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Term
| Liquidity Management Policies: Funds Management |
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Definition
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