Ch 16 Vocab Flashcards
(7 cards)
1
Q
The actions that Federal Reserve System takes to influence the level of real GDP and the rate of inflation in the economy
A
Monetary policy
2
Q
Deposits that a bank keeps readily available as opposed to lending them out
A
Reserves
3
Q
The amount of reserves that banks are required to keep on hand
A
Reserve requirements
4
Q
The process by which banks record whose account gives up money and whose account receives money when a customer writes a check
A
Check clearing
5
Q
A company that owns more than one bank
A
Bank holding company
6
Q
The interest rate that banks charge each other for loans
A
Federal funds rate
7
Q
The interest rate that the Federal Reserve changes commercial banks for loans
A
Discount rate
