Monetary Policy

  1. is the basis of banking today and originated with the goldsmiths in the middle ages.
    Fractional Reserve Banking
  2. The minnimum balance that the Fed requires a bank to hold in vault cash or on deposit with the Fed is called
    The Required Reserves
  3. The percentage of deposits held as required reserves is called the
    required reserves ratio
  4. allows a bank to create money by exchanging loans for deposits
    excess reserves
  5. is the maximum change in checkable deposits due to a change in excess reserves
    Money multiplier
  6. Action taken by the Fed to change the money supply is called
    Monetary policy
  7. are the buying and selling of government securities by the Fed through its trading desk at the New York Fed
    Open market operations
  8. Changes in the ________ occur when the Fed changes the rate of interest it charges on loans of reserves to banks
    Discount rate
  9. is a private market in which banks lend reserves to each other for less than 24 hours.
    Federal funds market
  10. The interest rate banks charge for overnight loans of reserves to other banks is called
    Federal funds rate
Card Set
Monetary Policy
Monetary Policy