Flashcards - CLEP Social Sciences and History: Money, Banking and Financial Markets

Flashcards - CLEP Social Sciences and History: Money, Banking and Financial Markets
1/14 (missed) 0 0
Create Your Account To Continue Studying

As a member, you'll also get unlimited access to over 79,000 lessons in math, English, science, history, and more. Plus, get practice tests, quizzes, and personalized coaching to help you succeed.

Try it risk-free
Try it risk-free for 30 days. Cancel anytime
Already registered? Log in here for access
Federal Reserve
The Federal Reserve System - also known as the Federal Reserve or simply the Fed - is the central banking system of the United States
Got it
financial asset
A financial asset is a tangible asset whose value is derived from a contractual claim, such as bank deposits, bonds, and stocks
Got it
the multiplier effect
In macroeconomics, a multiplier is a factor of proportionality that measures how much an endogenous variable changes in response to a change in some exogenous variable
Got it
The money multiplier
In monetary economics, a money multiplier is one of various closely related ratios of commercial bank money to central bank money under a fractional-reserve banking system
Got it
Excess reserves
In banking, excess reserves are bank reserves in excess of a reserve requirement set by a central bank
Got it
time value of money
The time value of money describes the greater benefit of receiving money now rather than later
Got it
present value
In economics, present value, also known as present discounted value, is the value of an expected income stream determined as of the date of valuation
Got it
14 cards in set
Front
Back
present value
In economics, present value, also known as present discounted value, is the value of an expected income stream determined as of the date of valuation
time value of money
The time value of money describes the greater benefit of receiving money now rather than later
Excess reserves
In banking, excess reserves are bank reserves in excess of a reserve requirement set by a central bank
The money multiplier
In monetary economics, a money multiplier is one of various closely related ratios of commercial bank money to central bank money under a fractional-reserve banking system
the multiplier effect
In macroeconomics, a multiplier is a factor of proportionality that measures how much an endogenous variable changes in response to a change in some exogenous variable
financial asset
A financial asset is a tangible asset whose value is derived from a contractual claim, such as bank deposits, bonds, and stocks
Federal Reserve
The Federal Reserve System - also known as the Federal Reserve or simply the Fed - is the central banking system of the United States
annuity
An annuity is a series of equal payments at regular intervals
future value
Future value is the value of an asset at a specific date
interest rate
An interest rate, or rate of interest, is the amount of interest due per period, as a proportion of the amount lent, deposited or borrowed
liquid
A liquid is a nearly incompressible fluid that conforms to the shape of its container but retains a constant volume independent of pressure
demand deposit
Demand deposits, bank money are funds held in demand deposit accounts in commercial banks
The fractional reserve banking system
Fractional-reserve banking is the practice whereby a bank accepts deposits, makes loans or investments, and holds reserves that are equivalent to a fraction of its deposit liabilities
medium of exchange
A medium of exchange is an intermediary used in trade to avoid the inconveniences of a pure barter system

To unlock this flashcard set you must be a Study.com Member.
Create your account

Unlock Your Education

See for yourself why 30 million people use Study.com

Become a Study.com member and start learning now.
Become a Member

Already a member? Log In

Support