money Flashcards
characteristics of money
medium of exchange
measure of value
store value
what makes money valuable
society accepts it
fiat money: stable gov and its money making power
who controls the money supply
the federal reserve bank
where is money printed
the bureau of printing and engraving
what type of money is most liquid
M1
what type of money is less liquid
M2
what type of money is least liquid
M3
examples of M1
currency in the hands of the public travelers check NOW accounts ATS accounts balances in credit union share draft
examples of M2
savings and small time deposits
overnight repurchase agreements
examples of M3
large time deposits
repurchase agreements longer than 1 day
MMMF shares by corporations
the _____ ______ is the federal reserve
nations central
3 tools of monetary policy the fed reserve controls
open market operations, discount rate, reserve requirements
what is the federal funds rate
interest rate at which depository institutions lend balances at fed reserves to other institutions
discount rate
the interest rate charged to commercial banks and other depository institutions on loans they receive from their regional fed reserve banks lending facility
who has the authority to change reserve requirements
the board of governors
