Money
The portion of money banks cannot lend out.
What is required reserve ratio?
Sets the RRR.
What is the Federal Reserve?
Color of Mrs. Hock's dog. (bonus for breed)
What is brown, daschund?
7 overseers of the Fed.
What are the Board of Governors?
Regulates the money supply.
Who are the Fed?
2 groups the Fed serves.
Who are the govt/banks?
Federal Reserve district you live in. (Name, not #)
What is Richmond?
Banks that make up the Fed.
What are 12 regional banks?
To determine how much money is created by a deposit, we use the...
What is the money multiplier formula?
Practice that requires one to disclose all terms and conditions.
What is truth-in-lending?
Policy lag is a problem of _____.
What is timing?
Consists of Board of Governors and 5/12 district bank presidents.
Who are the Federal Open Market Committee?
Most important monetary tool of the Fed.
What is the buying and selling of bonds?
bond purchases/ decreasing the discount rate/decreasing reserve requirement (more money on hand)
What is expansionary?
Issues paper currency.
Who are the Fed?
Action taken by the Fed.
What is monetary Policy?
bond sales/increase discount rate/ increase reserve requirements
What is contractionary?
The interest rate that banks pay to borrow money from the Fed.
What is the discount rate?
Bond purchases/ decrease discount rate/ decrease reserve requirements
What is expansionary?
A check goes to ____ between your bank and the recipient's.
What is the Federal Reserve?