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| That part of a person's wealth that can be readily used for transactions; also serves a store of value and a unit of account | ||
| Something generally accepted as a means of payment | ||
| Something that will allow purchasing power to be carried from one period to the next | ||
| A standard unit in which prices can be quoted and values of goods can be compared. | ||
| Money in it's physical form: coin and paper money | ||
| An Account at a financial institution on which checks can be written; also called checkable deposit. | ||
| The sum of currency (coin and paper money) and deposits | ||
| The central bank of the united states, which oversees the creation of money in the United States | ||
| A firm that channels funds from savers to investors by accepting deposits and making loans | ||
| The committee, consisting of the seven members of the Board of Governors and the twelve presidents of the Fed district banks, that meets about 8 times per year and makes decisions about the supply of money; only 5 of the presidents vote at any one time. | ||
| Something of value owned by a person or firm. | ||
| Something of value that a person or firm owes to someone else. | ||
| Deposits that commercial banks hold at the Fed. | ||
| The fraction of a bank's deposits that it is required to hold at the Fed. | ||
| The buying or selling of bonds by the central bank. | ||
| The proportion of currency that people in the economy want to hold relative to their deposits; it equals currency divided by deposits. | ||
| Currency plus reserves; the monetary base can be tightly controlled by the Fed. | ||
| The equation relating the price level and Real GDP to the quantity of money and the velocity of money: The quantity of money times its velocity equals the price level times real GDP. | ||
| A measure of how frequently money is turned over in the economy. | ||
| The multiple by which the money supply changes as a result of a change in the monetary base. | ||
| A description of the legal authority of central banks to make decisions on monetary policy with little interference by the government in power. | ||
| A business cycle caused by politicians' use of economic policy to overstimulate the economy just before an election. | ||
| The situation in which policymakers have the incentive to announce one economic policy bu then change the policy after the citizens have acted on the initial, stated policy. | ||
| A relationship between the nominal interest rate ad the quantity of money that people are wiling to hold at any given nominal interest rate. | ||
| The interest Rate that the fed charges commercial banks when they borrow from the Fed. | ||
| Purchases and sales of foreign currency by government in exchange markets with the intention to affect the exchange rate. |
