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Unformatted text preview: ernment, and foreign banks and official institutions, less cash items in the process of collection and Federal
Reserve float. (4) Other checkable deposits (OCDs).
M2: M1 plus (1) Savings and small time deposits (time deposits in amounts of less than $100,000). (2) Other nondeposit obligations of depository institutions.
M3: M2 plus (1) Large time deposits (in amounts or $100,000 or more) issued by all depository institutions. (2) Other nondeposit obligations of depository institutions.
Debt: The debt aggregate is the outstanding credit market debt of the domestic nonfinancial sectors. sau86198_ch01.qxd 10 Part One 4/21/02 8:52 PM Page 10 Introduction U.S. Treasury securities market), setting the discount rate (the rate charged on “lender
of last resort” borrowing from the Federal Reserve), and setting reserve requirements
(the minimum amount of reserve assets depository institutions must hold to back deposits held as liabilities on their balance sheets). Credit Allocation
A further reason why FIs are often viewed as special is that they are the major and...
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- Spring '09