Vocab
Banking System
Federal System
Money
Difficult
100
A service offered by the Fed to record reciepts and expenditures of bank clients.
What is Check Clearing
100
Often replaces Checks
What is Electronic payments?
100
Federal government pays intrest on these
What are bonds
100
Establishes the RRR (Required Reserve Ratio)?
What is the Fed?
100
The demand for money decreases when interest rates...
When they are high
200
Owns, or has a controlling interest in, more than one bank.
What is bank holding company?
200
Are often involved in check-clearing processes.
What are Private companies?
200
Supervises sales of securities in order to stabalize the economy.
What is the Federal Open Market Committee? (FOMC)
200
Reserves of cash may be stored in these
What is bank's vaults/with the Fed
200
One service the Fed provides to banks is...
What is clearing checks?
300
An audit of the bank's financial practices.
What is bank exam?
300
Often lend to each other on short-term basis
What are banks?
300
The Fed also distributes these.
What are Coins produced by the US Mint?
300
Determines how much money may be loaned
What is the level of the RRR
300
The Federal Reserve Bank of each district...
What is carries out bank exams?
400
The fraction of a bank's deposits that it must keep in reserve.
What is Required Reserve Ratio? (or RRR)
400
A period when all banks in a region lack cash flow
What is a natural disaster?
400
Prints notes which go to the Fed district banks
Who is the Treasury Department?
400
MM=1/RR
What is the Deposit Multiplier Formula?
400
One service the Federal Reserve provides the government is...
What is paying government bills?
500
Tells how much the money supply will increase after an initial cash deposit
What is deposit multiplier formula?
500
enforces Truth in lending Laws
What are the Fed banks
500
Processes US saving bonds, auctions other securities and provides info, collects payment, credit funds, and delivers bonds
What is the Fed?
500
The Fed monitors these
What is M1 and M2?
500
The required reserve ratio is...
What is the fraction of a banks deposits that it must keep in reserve?
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