The seven-member managing body of the Federal Reserve System, commonly called the Federal Reserve Board, which sets policy on banking regulations and the money supply.
A central bank provides financial and banking services for the government of a country and its commercial banking system, while also implementing the government's monetary policy.
Currency in circulation refers to the paper money and coins that are circulating within an economy and are counted as part of the total money supply, which also includes demand deposits in banks.
A demand deposit is an account balance that can be drawn upon without prior notice to the bank, utilizing various methods such as checks, cash withdrawals from ATMs, or electronic transfers.
Actions by the Federal Reserve System to decrease the money supply by curtailing the funds banks have available to lend.
The Federal Open Market Committee (FOMC) is a key committee within the Federal Reserve System responsible for setting short-term monetary policy in the United States. The FOMC is instrumental in regulating the money supply and influencing economic conditions to achieve sustainable economic growth.
The Federal Reserve System (Fed) is the central banking system of the United States, created by the Federal Reserve Act of 1913. It regulates the nation's monetary policy, oversees the cost and supply of money, and supervises international banking through agreements with other central banks.
A greenback is specifically a term for U.S. paper currency, named for the green ink used on the reverse side. It can also broadly refer to any paper money not backed by physical commodities like gold or silver.
Macroeconomics is the branch of economics that studies an economy as a whole, focusing on large-scale factors such as national productivity and inflation, and how various sectors and factors interrelate to form a broader economic landscape.
A monetarist is an economist who believes that the money supply is the key to the ups and downs in the economy. Monetarists, such as the late Milton Friedman, think that the money supply has far more impact on the economy's future course than, say, the level of federal spending.
Pertaining to, or having to do with, money, money creation, money supply, and government management of money.
The monetary base is the most narrow definition of the money supply, equal to the amount of currency in circulation plus the reserves held by commercial banks at the central bank. In monetary terminology, it is designated as M0.
Money supply refers to the total stock of money available in an economy at a given point in time. It includes various forms of liquidity to measure how easily people can access financial assets.
The money supply measures the amount of money circulating in an economy, categorized into different components such as M1, M2, and M3, which include cash, checking deposits, savings deposits, and other financial instruments.
Near money, also known as quasi money, refers to assets that are not as liquid as cash but can be quickly converted into cash and used to settle debts. Examples include bills of exchange, savings accounts, and treasury bills.
Open-Market Operations (OMO) are activities conducted by the securities department of the Federal Reserve Bank of New York, often referred to as the 'Desks', under the direction of the Federal Open Market Committee (FOMC). These operations involve the buying and selling of government securities to regulate the money supply within the economy.
Quantitative Easing (QE) is a non-traditional monetary policy used by central banks to stimulate the economy by increasing the money supply and lowering interest rates.
Quantitative Easing (QE) is a monetary policy tool used primarily by central banks to stimulate the economy by purchasing long-term securities in the open market, thereby increasing the money supply and lowering interest rates to boost economic activity.
Quantitative Easing (QE) is a monetary policy used by central banks to stimulate the economy when conventional monetary policy becomes ineffective. Primarily enacted during periods of low or zero interest rates, QE involves the creation of new money electronically to purchase government securities and increase the money supply.
Quantitative easing (QE) is a form of unconventional monetary policy in which a central bank purchases longer-term securities from the open market to increase the money supply and encourage lending and investment.
A fundamental theory in monetarist economics that posits a relationship between the money supply (M), price levels (P), velocity of money (V), and national income (Q) summarized by the equation MV = PQ.
An economic condition in which credit is difficult to secure, usually due to actions taken by the Federal Reserve Board to restrict the money supply.
The velocity of money refers to the frequency at which one unit of currency is used to purchase domestically-produced goods and services within a certain period. It is essential in understanding the health and efficiency of an economy.
