Banking and Monetary Economics: Key Terms and Concepts, Quizzes of Introduction to Macroeconomics

Download Banking and Monetary Economics: Key Terms and Concepts and more Quizzes Introduction to Macroeconomics in PDF only on Docsity! TERM 1 Checkable deposits DEFINITION 1 Bank deposits that allow the account owner to write checks to third parties; ATM or debit cards can also access these deposits and transmit them electronically TERM 2 Money aggregates DEFINITION 2 Measures of the economy's money supply TERM 3 M1 DEFINITION 3 The narrow measure of the money supply, consisting of currency and coins held by the non-banking public, checkable deposits, and travelers checks TERM 4 Savings Deposits DEFINITION 4 Deposits that earn interest but have no specific maturity date TERM 5 Time deposits DEFINITION 5 deposits that earn a fixed interest rate if held for the specified period, which can range from several months to several years; also called cds TERM 6 M2 DEFINITION 6 A money aggregate consisting of M1 plus savings deposits, small-denomination time depositins, and money market mutual funds TERM 7 Debit DEFINITION 7 Card that taos directly into the depositors bank account to fund purchases; also called check card, often doubles as an ATM card TERM 8 By bringing together both sides of the money market DEFINITION 8 Banks serve as financial intermediaries or as go betweens TERM 9 Asymmetric information DEFINITION 9 A situation in which one side of the market has more reliable information than the other side TERM 10 Net worth DEFINITION 10 Assets minus liabilities also called owners equity