Term
|
Definition
| Discount window loan, fed increases the balance in borrowing institutions reserve account and has an officer of the institution sign a promissory note |
|
|
Term
|
Definition
| Spending independent (autonomous) of income. It is the spending that is required for the basics food, clothing, shelter. It would exist even when income is zero. Your cited equation is not correct for autonomous spending. It looks like you were starting an equation for GDP |
|
|
Term
|
Definition
Equation that expresses how much people are willing to spend depending on their income, i.e. $10 trillion in economy X M to the D power=k * Y M is the total nominal quantity of money demanded for use as a medium of exchange Y is the current-dollar income of consumers and businesses, and k is a fraction that represents the portion of current-dollar income that consumers and businesses wish to hold as money |
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
Sensitivity to Market Risk |
|
|
Term
|
Definition
| Goods that may be used to produce other goods or services in the future |
|
|
Term
|
Definition
| Markets for financial instruments of one year or more. |
|
|
Term
|
Definition
| Time deposits issued by banks and other depository institutions |
|
|
Term
|
Definition
| Long-term loans made by banks to businesses |
|
|
Term
|
Definition
| A short-term debt instrument issued by businesses in lieu of borrowing form banks |
|
|
Term
|
Definition
| Pensions, funded by both employer and employee contributions |
|
|
Term
|
Definition
| Liabilities whose dollar amounts banks can directly manage |
|
|
|
Term
|
Definition
| A number that tells how much aggregate transactions deposits at all depository institutions will change in response to a change in total reserves of these institutions |
|
|
Term
|
Definition
| An instrument of monetary policy (usually controlled by central banks) that allows eligible institutions to borrow money from the central bank, usually on a short-term basis, to meet temporary shortages of liquidity caused by internal or external disruptions. Actually a percentage point above the federal funds rate. |
|
|
Term
|
Definition
| I n the United States this term is the interest rate at which private depository institutions lend balances at the Federal Reserve to other depository institutions, usually overnight.[ |
|
|
Term
|
Definition
| Federal Open Market Committee, The branch of the Federal Reserve Board that determines the direction of monetary policy. The FOMC is composed of the Board of Governors, which has seven members, and five reserve-bank presidents. The president of the Federal Reserve Bank of New York serves continuously, while the presidents of the other reserve banks rotate in their service of one-year terms. |
|
|
Term
|
Definition
| A type of banknote issued by the Federal Reserve System and is the main type of paper currency in the United States. |
|
|
Term
|
Definition
| Full-Employment act The Act explicitly instructs the nation to strive toward four ultimate goals: full employment, growth in production, price stability, and balance of trade and budget. By explicitly setting requirements and goals for the federal government to attain, the Act is markedly stronger than its predecessor. |
|
|
Term
|
Definition
| In economics, this term measures the responsiveness of the quantity demanded of a good to the change in the income of the people demanding the good. It is calculated as the ratio of the percent change in quantity demanded to the percent change in income. For example, if, in response to a 10% increase in income, the quantity of a good demanded increased by 20%, the income elasticity of demand would be 20%/10% = 2. |
|
|
Term
|
Definition
| An "independent central bank" is one which operates under rules designed to prevent political interference; examples include the Reserve Bank of Australia,the Reserve Bank of India, the European Central Bank, the Bank of Canada, the Banco de la República de Colombia, Central Bank of Norway and the U.S. Federal Reserve. |
|
|
Term
|
Definition
An #### is a variable (such as the money supply) that is not directly under the control of the central bank, but that does respond fairly quickly to policy actions, is observable frequently and bears a predictable relationship to the ultimate goals of policy. |
|
|
Term
| Investment grade securities |
|
Definition
| Term used to describe bonds suitable for purchase by prudent investors. |
|
|
Term
|
Definition
| ### is a term used to explain a difference between two types of financial securities (e.g. stocks), that have all the same qualities except liquidity. |
|
|
Term
|
Definition
| The ### is a daily reference rate based on the interest rates at which banks offer to lend unsecured funds to other banks in the London wholesale money market (or interbank market). |
|
|
Term
|
Definition
| Currency plus transaction deposits |
|
|
Term
|
Definition
M1+ savings and small-denomination time deposits and balances of money market mutual funds |
|
|
Term
|
Definition
| In accounting and finance, ### is the act of assigning a value to a position held in a financial instrument based on the current market price for that instrument or similar instruments. For example, the final value of a futures contract that expires in 9 months will not be known until it expires. If it is marked to market, for accounting purposes it is assigned the value that it would fetch in the open market currently. |
|
|
Term
|
Definition
| Internal goals – inflation goals – maintain low inflation.Output goals – prevent sharp swings in real GDP relative to its long-run level.Employment goals - high employment External goals – International objectives and domestic goals – maintain exports to control equilibrium level of real GDP (imports = less consumption dollars, exports increases aggregate expenditures)External balance for its own sake – have more exports so internal businesses are happy that domestics are spending on their products |
|
|
Term
|
Definition
| The most common mechanism used to generate money is typically called the ###. It measures the amount by which the commercial banking system increases the money supply. To control the amount of money created by the system, central banks place reserve ratios on the commercial banks which set the proportion of primary deposits the banks must hold as qualifying reserves. |
|
|
Term
|
Definition
| n Keynesian economic theory, a factor that quantifies the change in total income as compared to the injection of capital deposits or investments which originally fueled the growth. It is usually used as a measurement of the effects of government spending on income, and it can be calculated as one divided by the marginal propensity to save. |
|
|
Term
|
Definition
| A debt security issued by a state, municipality, or county, in order to finance its capital expenditures. Municipal bonds are exempt from federal taxes and from most state and local taxes, especially if you live in the state the bond is issued. |
|
|
Term
|
Definition
| Open market operations are the means of implementing monetary policy by which a central bank controls its national money supply by buying and selling government securities, or other instruments. Monetary targets, such as interest rates or exchange rates, are used to guide this implementation. |
|
|
Term
| Property casualty insurance |
|
Definition
| A broad category of coverage against loss of property, damage or other liabilities, including such things as vehicle insurance, liability insurance, theft insurance and elevator insurance. |
|
|
Term
|
Definition
| The "real interest rate" is the effective interest rate minus the inflation rate. |
|
|
Term
|
Definition
| Interval that passes between the need for a countercyclical policy action and the recognition of this need by a policy maker |
|
|
Term
|
Definition
| Interval between recognition of a need for a countercyclical policy action and the actual implementation of the policy action |
|
|
Term
|
Definition
| Interval that elapses between the implementation of an intended countercyclical policy and its ultimate effects on an economic variable |
|
|
Term
SDR (Special Drawing Rights) |
|
Definition
| An international type of monetary reserve currency, created by the International Monetary Fund (IMF) in 1969, which operates as a supplement to the existing reserves of member countries. Created in response to concerns about the limitations of gold and dollars as the sole means of settling international accounts, ###s are designed to augment international liquidity by supplementing the standard reserve currencies. |
|
|
Term
|
Definition
| ### is the demand for financial assets, such as securities, money or foreign currency that is not dictated by real transactions such as trade, or financing. The need for cash to take advantage of investment opportunities that may arise. |
|
|
Term
|
Definition
| In economics, the multiplier effect refers to the idea that an initial spending rise can lead to even greater increase in national income. In other words, an initial change in aggregate demand can cause a further change in aggregate output for the economy |
|
|
Term
|
Definition
| A market for contracts requiring the immediate sale or purchase of an asset |
|
|
Term
|
Definition
| Difference between the federal funds rate and the discount rate |
|
|
Term
|
Definition
| Any form of commodity, asset, or money that has value and can be stored and retrieved over time. |
|
|
Term
|
Definition
| A bank account that, at the close of each business day, automatically transfers amounts that exceeds (or falls short of) a certain level into a higher-interest earning account. |
|
|
Term
|
Definition
| A survey done by The Economist that determines what a country's exchange rate would have to be for a Big Mac in that country to cost the same as it does in the United States. Purchase power parity (PPP) is the theory that currencies adjust according to changes in their purchasing power. With the Big Mac PPP, purchasing power is reflected by the price of a McDonald's Big Mac in a particular country. The measure gives an impression of how overvalued or undervalued a currency is. |
|
|
Term
|
Definition
| In the United States ### is a term used by the Federal Reserve for checkable deposits and other accounts that can be used directly as cash without withdrawal limits or restrictions. They are the only bank deposits that require the bank to keep reserves at the central bank. "Time deposits" can also be called "transaction deposits". |
|
|
Term
|
Definition
| In the United States ### is a term used by the Federal Reserve for checkable deposits and other accounts that can be used directly as cash without withdrawal limits or restrictions. They are the only bank deposits that require the bank to keep reserves at the central bank. "Time deposits" can also be called "###". |
|
|
Term
|
Definition
| ### is the demand for financial assets, e.g., securities, money or foreign currency. It is used for purposes of business transactions and personal consumption. |
|
|
Term
|
Definition
| The term “agency securities” is sometimes used by brokers, dealers and investment advisors to refer to securities issued or guaranteed by a variety of entities other than the U.S. Treasury. Agency securities are not the same as U.S. Treasury securities. An agency security represents a loan by the security purchaser (the investor) to the issuing entity and an investor should consider the different characteristics and different guarantees of agency securities. |
|
|
Term
|
Definition
| A term used to describe the rate at which money is exchanged from one transaction to another. |
|
|
