Exam 4 Flashcards
Provide loans during times of financial crisis, manage payments systems, and oversee commercial banks and the financial system.
Central Bank (The Fed)
How many members of the FOMC is the Board of Governors?
7 members
How many bank presidents vote on the FOMC?
5 presidents
The ability of the central bank to set monetary policy instruments.
Instrument independence
The ability of the central bank to set the goals of monetary policy.
Goal independence
What are the three players in the money supply?
- Central bank
- Banks
- Depositors
When banks clear checks for banks, crediting the amount before it debits.
Float
The lending and asset-purchase programs that resulted in a huge monetary base expansion, but not the equivalent change in the money supply.
Quantitative Easing