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________- regulations on the minimum amount of reserves that banks must hold against deposits.
________- deposits that banks have received but have not loaned out.
Store of value
________- an item that people can use to transfer purchasing power from the present to the future.
________ - the fraction of deposits that banks hold as reserves.
Unit of discount
________- the yardstick people use to post prices and record debts.
________- the ease with which an asset can be converted into the economys medium of exchange.
________- the paper bills and coins in the hands of the public.
________- the setting of the money supply by policymakers in the central bank.
regulate banks and ensure the health of the banking system and control the money supply.
________- the use of borrowed money to supplement existing funds for purposes of investment.
Medium of exchange
________- an item that buyers give to sellers when they want to purchase goods and services.
________- The interest rate on the loans that the Fed makes to banks.
the purchase and sale of US government bonds by the Fed.
balance of reserves
The ________ in banks rely on the amount of money households choose to deposit.
Federal funds rate
________- the interest rate at which banks make overnight loans to one another.
________ (Fed)- the central bank of the United States.
________- the quantity of money available in the economy.
an institution designed to oversee the banking system and regulate the quantity of money in the economy.
a banking system in which banks hold only a fraction of deposits as reserves.
________ - the ratio of assets to bank capital.