Chapter 15 Terms 101 - Central Banks and Their Roles - The...

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Central Banks and Their Roles - The duties of central banks are in three categories. Central banks perform banking functions for their governments, provide financial services for private banks, and conduct their nations’ monetary policies. The Federal Reserve System - The Federal Reserve System, or the Fed, is the most important regulatory agency in our entire monetary system and is considered the monetary authority. Defining Money - The money supply is the amount of money in circulation. Changes in the money supply affect important economic variables in the short-run. The Money Supply (M1) - The total value of currency plus checkable deposits (demand deposits in commercial banks and other checking accounts in thrift institutions) and travelers checks not issued by banks. Currency - Coins minted by the U.S. Treasury and paper currency, usually in the form of Federal Reserve notes issued by the Federal Reserve banks. Transaction Deposits
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This note was uploaded on 06/06/2011 for the course ECON 101 taught by Professor Dsliva during the Fall '11 term at Moraine Valley Community College.

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Chapter 15 Terms 101 - Central Banks and Their Roles - The...

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