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| with a lower interest rate investors move some funds overseas in search of higher returns ($ always chases the highest return) .: demand for domestic currency decreases.: domestic goods become less expensive to foreign goods.: net exports increases | ||
| Goods, services, and foreign factor income | ||
| when exports exceed imports (X<M) | ||
| when imports exceed exports (X>M) | ||
| foreign financial investment (stocks, bonds, real estate, factories, etc...) and official reserves (foreign currency holdings) | ||
| exchange rates determined solely on the supply of and demand for the currency on the international market (affected by STRING - speculation, consumer tastes, real interest rates, net exports, & government regulations) | ||
| exchange rates that are predetermined and set at a specific ratio to another countries currency | ||
| when a country's currency loses value in relation to another country's currency (when either supply of this currency increases or demand for this currency decreases) | ||
| when a country's currency gains value in relation to another country's currency (when either the supply of this currency decreases or the demand for this currency increases) | ||
| Spending for the production and accumulation of captial and additions to inventories | ||
| Tendency for increases in the price level to lower the real value of financial assets with fixed money value, and vice versa | ||
| Tendency for increases in the pricel elvel to increase the demand for money, raise interest rates, and, as a result, reduce total spending and real output in the economy, and vice versa | ||
| Money used for the purpose of buying & selling goods or services | ||
| An asset set aside for future use | ||
| An asset used to measure a good or service's worth | ||
| Most narrowly defined money supply, equal to currency in the hands of the public and the checkable deposits of commercial banks | ||
| A more broadly devined money supply, equal to M1 plus non-checkable savings accounts (including money market deposit accounts(, small time deposits (deposits of less than $100,000), and individual money market mutual fund balances | ||
| Any deposit in a commercial bank or thrift institution against which a check may be written | ||
| An interest-earning deposit in a commercial bank or thrift institution that the depositor can withdraw without penalty after the end of a specified period | ||
| A legal designation of a nation's official currency (bills and coins). Payment of debts must be accepted in this monetary unit. | ||
| Amount of moneh people want to hold fur use as a medium of exchange | ||
| A statement of the assets, liabilities, and net worth of a firm or individual at some given time | ||
| A reserve requirement that is less than 100% of the checkable-deposit liabilities of a commercial bank or thrift institution | ||
| The funds that banks and thrifts must deposit with the Federal Reserve Bank (or hold as vault cash) to meet the legal reserve requirement; a fixed percentage of the bank's or thrift's checkable deposits | ||
| The amount by which a bank's or thirft's actual reserves exceed its requred reserves; actual reserves minus required reserves | ||
| The funds that a bank has on deposit at the Federal Reserve Bank of its district (plus its vault cash) | ||
| The interest rates banks and other depository institutions charge one another on overnight loans mades out of the excess reserves | ||
| The benchmark interest rate that banks use as a reference point for a wide range of loans to businesses and individuals | ||
| The interest rate the Federal Reserve Banks charge on loans to commercial banks or thift institutions | ||
| Interest not adjusted for inflation; expressed in current values | ||
| Interest minus inflation; expressed in constand values | ||
| Number of times per year that the average dollar in the money supply is spent for fianl goods and services; nominal GDP divided by the money supply |
