Homework #4 - Robert Garza ECON 3131 Homework #4 Required...

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Robert Garza ECON 3131 Homework #4 Required services - Legally mandated reserve holdings at depository institutions, which are proportional to the dollar amounts of transactions accounts. Required reserves ratio - Fractions of transactions deposit balances that the Federal Reserve mandates that depository institutions maintain either as deposits with Federal Reserve banks or as vault cash. Excess reserves - Depository institutions’ cash balances at Federal Reserve banks or in the institutions’ vaults that exceed the amount that they must hold to meet legal requirements. Total reserves - The total balances that depository institutions hold on deposit with Federal Reserve banks or as vault cash. “Loaned-up” - Refers to a situation in which a bank cannot make any additional loans. Since a bank may only lend out its excess reserves, all loaned up translates to a bank having 0 excess reserves. Open market operations
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This note was uploaded on 07/25/2011 for the course ECON 3311 taught by Professor Leonard during the Spring '09 term at University of Houston.

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Homework #4 - Robert Garza ECON 3131 Homework #4 Required...

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