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Flashcards - The Central Bank & Monetary Policy

Flashcards - The Central Bank & Monetary Policy
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The federal funds rate
In the United States, the federal funds rate is the interest rate at which depository institutions lend reserve balances to other depository institutions overnight, on an uncollateralized basis
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Open market operations
An open market operation is an activity by a central bank to give liquidity in its currency to a bank or a group of banks
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The money supply
In economics, the money supply or money stock, is the total amount of monetary assets available in an economy at a specific time
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the Fed
The Federal Reserve System - also known as the Federal Reserve or simply the Fed - is the central banking system of the United States
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real interest rate
The real interest rate is the rate of interest an investor, saver or lender receives after allowing for inflation
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real interest rate
The real interest rate is the rate of interest an investor, saver or lender receives after allowing for inflation
the Fed
The Federal Reserve System - also known as the Federal Reserve or simply the Fed - is the central banking system of the United States
The money supply
In economics, the money supply or money stock, is the total amount of monetary assets available in an economy at a specific time
Open market operations
An open market operation is an activity by a central bank to give liquidity in its currency to a bank or a group of banks
The federal funds rate
In the United States, the federal funds rate is the interest rate at which depository institutions lend reserve balances to other depository institutions overnight, on an uncollateralized basis
The prime rate
Prime rate or prime lending rate is a term applied in many countries to reference an interest rate used by banks
The quantity theory of money
In monetary economics, the quantity theory of money states that the general price level of goods and services is directly proportional to the amount of money in circulation, or money supply
The velocity of money
The term "velocity of money" refers to how fast money passes from one holder to the next
equation of exchange
In economics, the equation of exchange is the relation: where, for a given period, is the total nominal amount of money supply in circulation on average in an economy
market for loanable funds
In economics, the loanable funds doctrine is a theory of the market interest rate
Monetarism
Monetarism is a school of thought in monetary economics that emphasizes the role of governments in controlling the amount of money in circulation

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