Econ Chpt 16 Vocab

The seven-member board that oversees the federal reserve system.

The actions the Federal Reserve takes to influence the level of real GDP and the rate of inflation in the economy.

The twelve banking districts created by the Federal Reserve Act.

The research arm of the Federal Reserve.

Federal Reserve committee that makes key decisions about interest rates and the growth of the United States money supply.

The process by which banks record whose account gives up money and whose account receives money when a customer writes a check.

A ompany that owns more than one bank.

Interest rate banks charge each other for loans.

Rate the Federal Reserve charges for loans to commercial banks.

Total assets minus total liabilities.

The process by which money enters into circulation.

Ratio of reserves to deposits required of banks by the Federal Reserve.

Amount of new money that will be created with each demand deposit, calculated as 1 divided by RRR.

Reserves greater than the required amounts.

Rate of interest banks charge on short-term loans to their best customers.

The buying and selling of government securities to alter the supply of money.

The belief that the money supply is the most important factor in macroeconomic performance.

Monetary policy that increases the money supply.

Monetary policy that reduces the money supply.

Delay in implementing monetary policy.

The time it takes for monetary policy to have an effect.