Economics 8

Reserve requirements

A minimum amount of money banks are required to have

Discount rate

A percentage the FEDS charge their member banks, all other interest rates are based on this

Expansionary monetary policy

An expansionary policy is a macroeconomic policy that seeks to expand the money supply to encourage economic growth or combat inflationary price increases.

Contractionary monetary policy

Contractionary policy refers to either a reduction in government spending, particularly deficit spending, or a reduction in the rate of monetary expansion by a central

FOMC

The Federal Open Market Committee (FOMC) is the branch of the Federal Reserve Board that determines the direction of monetary policy. The FOMC is composed of the board of governors, which has seven members, and five Reserve Bank presidents. The president of the Federal Reserve Bank of New York serves continuously, while the presidents of the other Reserve Banks rotate their service of one-year terms.

The federal reserve

The Federal Reserve System (FRS) is the central bank of the United States. The Fed, as it is commonly known, regulates the U.S. monetary and financial system. The Federal Reserve System is composed of a central governmental agency in Washington, DC, the Board of Governors and 12 regional Federal Reserve Banks in major cities throughout the United States.