MGMT 1 Chapter Notes - Chapter 20: Federal Deposit Insurance Corporation, Reserve Requirement, Commercial Bank
21 Jul 2016
School
Department
Course
Professor
Document Summary
Money anything that people generally accept as payment for goods and services. Barter the direct trading of goods or services for other goods or services. Money supply the amount of money the federal reserve bank makes available for people to buy goods and services. M-1 money that can be accessed quickly and easily (coins and paper money, checks, traveler"s checks, etc. ) M-2 money included in m-1 plus money that may take a little more time to obtain (savings accounts, money market accounts, mutual funds, certificates of deposit, etc). M-3 m-2 plus big deposits like institutional money market funds. Reserve requirement a percentage of commercial banks" checking and savings accounts that must be physically kept in the bank. Open-market operations the buying and selling of u. s. government bonds by the fed with the goal of regulating the money supply. Discount rate the interest rate that the fed charges for loans to member banks.
