Types of Money
Cryptocurrency is an example of this type of money.
What is decentralized money?
National banks are chartered by this government
What is the federal government?
What the Federal Reserve is for the United States
What is the central bank of the United States?
Theory that suggests that rapid changes in money supply are the main cause of economic stability
Direct exchange of goods and services without money
What is barter?
Commodity money
What is the type of money whose value comes from the material it is made from?
Type of bank that is privately owned and created to make a profit.
What is commerical bank?
They oversee the Federal Reserve
What is the Federal Reserve Board of Governors?
Audits of bank financial practices.
What are bank exams?
Card that pulls money directly from a bank account
Anything that someone will accept as payment for goods/services
What is money?
The type of bank that is similar to a commerical bank but is exclusive to their members?
The type of policy that the Federal Reserve enacts.
What is monetary policy?
An effect of contractionary spending
What is: Real GDP down, prices fall, unemployment increases
System where currency value is backed by gold
What is gold standard?
Money that has value because the government/people declare it to have worth.
What is fiat money?
Store money, lend money, and provide financial services
What are banks created to do?
The amount of money that member banks must keep in reserves in order to bank with the Federal Reserve.
What is the reserve requirement?
Examples of this type of policy are buying bonds, lowering the reserve requirement, and reducing the discount rate.
What is expansionary policy?
What is blockchain?
Paper and coins that we use in everyday transactions
Savings accounts and other deposits that cannot be used directly but can be converted to cash quickly.
What is near money?
The interest rate that the Federal Reserve charges when it lends to other banks.
What is the discount rate?
The most commonly used tool used by the Feds to control the supply of money
What are open market operations? (buying/selling government securities)
Interest rate banks charge their best customers
What is prime rate?