Term
| Open Market Operations (532) |
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Definition
| purchase and sale of government securites by the Federal Reserve System |
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Term
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Definition
| interest rate that the Fed charges commercial banks for the loans it extends to them |
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Term
| Federal Funds Market (534) |
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Definition
| market in which banks provide short-term loans to other banks that need cash to meet reserve requirements |
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Term
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Definition
| market in which money demand and money supply determine the equilibrium interest rate |
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Term
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Definition
| a measure of how frequently money is turned over |
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Term
| Quantity Theory of Money and Prices (552) |
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Definition
| A thoery of the connection between the money supply and the price level when the velocity of money is constant |
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