Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
STC Eco Ch15
| Term | Definition |
|---|---|
| Medium of exchange: | An items that sellers generally accept and buyers generally use to pay for goods and services. |
| Unit of account: | A standard measurement unit in terms of which prices can be stated and the relative value of goods and services compared. |
| Store of value: | An asset to purchase items in the future. |
| M1: | The most narrowly defined money supply, equal to currency (outside banks) plus the checkable deposits of commercial bank and thrift institutions. |
| Money definition: M1: | Currency: coins + paper money, Checkable deposits and Institutions that offer checkable deposits |
| Federal reserve notes: | Paper bills issued by the Federal Reserve Banks. |
| Checkable deposits: | Deposit in banks or thrifts against which checks may be written. |
| Commercial banks: | Firms that engage in the business of banking (accepting deposits, offering checking accounts, and making loans). |
| Thrift institutions: | Savings and loan associations, mutual savings banks, or credit unions that offer savings and checking accounts. |
| Near-monies: | Financial assets that do not directly serve as a medium of exchange but readily can be converted into narrowly defined money (currency + checkable deposits). |
| M2: | A more broadly defined money supply, equal to M1 plus noncheckable savings accounts (including money market deposit accounts), time deposits of less than $100,000, and individual money market mutual fund balances. |
| Savings account: | An interest earning account (at a bank or thrift) from which funds normally can be withdrawn at any time. |
| Value of money: | Acceptability, Legal tender and Relative scarcity |
| Federal reserve system: | A central component of the U.S. banking system, consisting of the board of governors of the Federal reserve Banks. |
| Board of governors: | The seven member group that supervises and controls the money and banking system of the Unit States; the Board of governors of the Federal reserve System; the Federal Reserve Board. |
| Federal reserve banks: | The 12 banks chartered by the U.S. government to control the money supply and perform other functions. |
| Fed functions and responsibilities: | Issuing currency, Setting reserve requirements and holding reserves, Lending money to banks and thrifts, Providing for check collection, Acting as fiscal agent, Supervising banks, Controlling the money supply |
| Fractional reserve banking system: | A banking system in which banks and thrifts are required to hold less than 100 percent of their checkable deposit liabilities as cash reserves. |
| Balance sheet: | A statement of the assets, liabilities, and net worth of a firm, individual, or institution at some time. |
| Required reserves: | The funds that banks and thrifts must deposit with the Federal Reserve Bank (or hold as vault cash) to meet Fed’s reserve requirements. |
| Reserve ratio: | The legally required percentage or reserves for every $1 of a bank or thrift’s checkable deposits. |
| Excess reserves: | Actual bank or thrift reserve minus legally required reserves. |
| Actual reserves: | The funds that a bank or thrift has on deposit at a Federal reserve Bank or holding as vault cash. |
Created by:
vjambriz
Popular Business sets