Main Idea
Vocabulary 1
Objectives
Vocabulary 2
100
Works to strengthen and stabilize the nation's monetary system.
What is The Federal Reserve System?
100
Commercial banks that are members of , and hold stock in Fed.
What is member banks?
100
Independent and equally powerful banks
What is Federal Reserve Banks?
100
The best or lowest intrest rate commericial bankers charge their customers
What is Prime Rate?
200
Federal Reserve actions inteded to stabilize the economy make up.
What is Monetary Policy?
200
Corporations that own one or more banks.
What is Bank Holding companies?
200
Federal Open Market Committee
What is FOMC?
200
Supply of money directly affects the price level over the long run
What is Quanity Theory Of Money?
300
Changes in the money supply affect the interest rate, the availability of credit, and price level.
What is Monetary Policy, Banking, and the Economy?
300
The expansion or contraction of the money supply in order to influence the cost and availability of credit.
What is monetary policy?
300
Another name for a T-Account
What is Balance Sheet?
300
The market rate of intrest minus the rate of inflation
What is Real Rate Of Interest?
400
In the short run, increase or decrease the money supply affects the interest rate, which is price credit.
What is Short- Run Input?
400
Condensed statement showing all assets and liabilities at a given time.
What is balance sheet?
400
The first tool of monetary policy
What is Reserve Requirement?
400
Money's role as medium of exchange
What is M1
500
In the long run changes in the supply of may affect the general level of prices.
What is Long-Run?
500
The excess of assets ober liabilities, which is a measure of value of a business.
What is net worth?
500
The second and most popular tool of monetary policy
What is the open market operations?
500
Money's role as a store of value
What is M2
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