This preview shows page 1. Sign up to view the full content.
Unformatted text preview: loan money to other banks. Federal reserve - The federal group that controls the money supply though monetary policy and fiscal policy. Federal Reserve Banks - Branches of the Fed that serve as banks for non-government controlled banks by accepting deposits, giving withdrawals, and making loans as needed. Fiat Money - Money that has no intrinsic value but that is instead only valuable because it is backed and regulated by a governing body. Financial Intermediary - An entity, like a bank, that works between savers and borrowers by accepting deposits and making loans. Fiscal Policy - Operations by the Fed that affect the money supply including manipulation of the federal funds interest rate and the reserve requirement. Fractional Reserve Banking System - A banking system wherein less than 100% of the deposits are required to be held as reserves....
View Full Document
- Fall '08