Financial Sector
Terms : Hide Images
| 13461757551 | medium of exchange | anything that is used to determine value during the exchange of goods and services must be accepted by others, portable, divisible, and uniform | 0 | |
| 13461757552 | store of value | an item that people can use to transfer purchasing power from the present to the future Durable and available in the future without losing value | 1 | |
| 13461757553 | measure of value | a function of money that allows it to serve as a common way to express value | 2 | |
| 13461757554 | m1 money | Measures money that can be spent immediately: currency, coin, travelers checks, funds in checking accounts | 3 | |
| 13461757555 | m2 money | a measure of the money supply: it consists of M1 plus other relatively liquid assets(savings accounts, small time deposit accounts, market deposit accounts) | 4 | |
| 13461757556 | liquidity of money | the ability to be used as, or directly converted to, cash | 5 | |
| 13461757557 | money demand | the amount that households, firms, and government want to hold in currency and deposits | 6 | |
| 13461757558 | stock | A share of ownership in a corporation. | 7 | |
| 13461757559 | bond | Certificate issued by a government or company promising to pay back a borrowed sum with interest. | 8 | |
| 13461757560 | time deposits | savings plans that require savers to leave their funds on deposit for certain periods of time | 9 | |
| 13461757561 | bank balance sheet | On a balance sheet, a firm's assets are listed on the left, and its liabilities and stockholder's equity are listed on the left. | 10 | |
| 13461757562 | asset of a bank | Anything owned by the bank or owed to the bank is an asset of the bank. Cash on reserve is an asset and so are loans made to citizens | 11 | |
| 13461757563 | liability of a bank | anything owned by depositors or lenders to the bank | 12 | |
| 13461757564 | fractional reserve banking | a banking system that keeps only a fraction of funds on hand and lends out the remainder | 13 | |
| 13461757565 | required reserves | reserves that a bank is legally required to hold, based on its checking account deposits | 14 | |
| 13461757566 | excess reserves | the amount of any deposit that does not have to be held aside and may be used to make loans and buy investments | 15 | |
| 13461757567 | federal funds rate | Interest rate banks charge each other for loans. Aligns with Fed interest rates. | 16 | |
| 13461757568 | prime interest rate | the lowest rate of interest that banks charge for short-term loans to their most creditworthy customers | 17 | |
| 13461757569 | discount rate | The interest rate on the loans that the Fed makes to banks | 18 | |
| 13461757570 | open market operations | Buying & selling government securities/bonds to change the supply of money | 19 | |
| 13461757571 | money multiplier | The amount of money the banking system generates with each dollar of reserves, the multiple by which deposits can increase for every dollar increase in reserves; equal to 1 divided by the required reserve ratio. | 20 | |
| 13461757572 | nominal interest rate | the interest rate as usually reported without a correction for the effects of inflation | 21 | |
| 13461757573 | real interest rate | the interest rate corrected for the effects of inflation | 22 | |
| 13461757574 | FDIC | Federal Deposit Insurance Corporation: a federally sponsored corporation that insures accounts in national banks and other qualified institutions | 23 | |
| 13461757575 | velocity of money | the rate at which money changes hands | 24 | |
| 13461757579 | money market graph |  | 25 | |
| 13461757580 | loanable funds market graph |  | 26 | |
| 13543808440 | easy money policy | monetary policy that increases the money supply AKA Expansionary monetary policy | 27 | |
| 13543816139 | tight money policy | monetary policy that reduces the money supply AKA Contractionary monetary policy | 28 | |
| 13543831784 | monetary policy | Federal Reserve Board managing the economy by altering the supply of money and interest rates | 29 |
