Ch. 16 - Monetary Policy

Delay in implementing monetary policy

The time it takes for monetary policy to have an effect.

Interest rate banks charge each other for loans

The belief that the money supply is the most important factor in macroeconomics performance

Federal Reserve committee that makes key decisions about interest rates and the US money supply

Who was the Chairman of the Federal Reserve?

Rate the Fed charges for loans to commercial banks

Reserves greater than the required amount

Amount of new money that will be created with each demand deposit calculated as 1/RRR

Monetary policy that increases the money supply

(Total assets) - (Total liabilities) = __________

Interest rate banks charge on short-term loans to their best customers

The process where banks record whose accounts give and receive money when a check is written.

A company the owns more than one bank

The actions the Fed takes to influence the GDP & the rate of inflation in the economy

Buying & selling government securities to change the money supply

Research arm of the Federal Reserve

7-member board that oversees the Federal Reserve System

How many Federal Reserve Districts are there?

The process by which money enters into circulation

Monetary policy that reduces the money supply