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9 Cards in this Set
- Front
- Back
Balance sheet |
Statement of assets and claims on assets that summarizes the financial position of the bank at a certain time |
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Fractional reserve banking system |
Which only a fraction of the total money supply is held in reserve as currency |
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Vault cash |
Cash held by a bank (aka till money) |
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Required reserves |
An amount of funds equal to a specified percentage of the bank's own deposit liabilities |
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Reserve ratio |
The ratio of the required reserves the commercial bank must keep to the bank's own outstanding checkable-deposit liabilities |
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Excess reserves |
Subtracting required reserves from its actual reserves |
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Actual reserves |
Funds that a bank has in deposit at the Federal Reserve Bank of its district (plus its vault cash) |
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Federal funds rate |
Interest rate paid on overnight loans |
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Monetary multiplier |
Multiple of its excess reserves by which the banking system can expand checkable deposits and thus the money supply by making new loans |