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Unformatted text preview: reserve requirement Discount rate-The interest rate that the Federal Reserve Banks charge on the loans they make to commercial banks and thrift institutions Term auction facility- The monetary policy procedure used by the Federal Reserve , in which commercial banks anonymously bid to obtain loans being made available by the Fed as a way to expand reserves in the banking system. Federal funds rates- The interest rate banks and other depository institutions charge one anotheron overnight loans made out of their excess reserves Expansionary monetary policy- Federal Prime interest rate-The benchmark interest rate that banks use as a reference point for a wide range of loans to businesses and individuals. Restrictive monetary policy-Federal reserve system actions to reduce the money supply , increase interest rates , and reduce inflation ; a tight money policy. Taylor rule-Cylindrical symmetry-Mortgage debt crisis-...
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