Objective 3 Flashcards
1
Q
Federal Reserve (FED)
A
The central bank of the United States charged with providing a safe, flexible and stable monetary and financial system.
2
Q
FOMC
A
The Federal Open Market Committee of the FED responsible for conducting Open Market Operations, a tool to control the nation’s money supply.
3
Q
M1
A
The most liquid form of money consisting of currency, traveler’s checks and checkable deposits
4
Q
M2
A
The M1 supply, plus the next most liquid form of money including savings deposits, time deposits, money market accounts,.
