Glossary of Financial Terms: Monetary Policy, Banks, and Investments, Quizzes of Introduction to Macroeconomics

Download Glossary of Financial Terms: Monetary Policy, Banks, and Investments and more Quizzes Introduction to Macroeconomics in PDF only on Docsity! TERM 1 M1 DEFINITION 1 currency in the hands of the public, balance in banks, checking accounts, checkable deposits TERM 2 Bank reserves DEFINITION 2 Cash held by the bank to meet depositor withdrawals and payments TERM 3 M2 DEFINITION 3 M1 assets plus savings deposits and money market deposit accounts TERM 4 Board of Governors DEFINITION 4 Leadership of Fed, 7 governors appointed by president to staggered 14 year terms TERM 5 Discount window lending DEFINITION 5 Lending of reserves by the Fed to commercial banks TERM 6 Discount rate DEFINITION 6 Interest rate the Fed charges commercial banks to borrow reserves from the Fed TERM 7 Financial intermediaries DEFINITION 7 Firms that determine to whom to extend credit using funds raised from saversconsists of -channeling funds between surplus and deficit agents-. A financial intermediary is a financial institution that connects surplus and deficit agents. TERM 8 Mutual Fund DEFINITION 8 A mutual fund is a type of professionally managed collective investment vehicle that pools money from many investors to purchase securities. TERM 9 Principal Amount DEFINITION 9 Amount originally lent TERM 10 Coupon Rate DEFINITION 10 A coupon payment on a bond is a periodic interest payment that the bondholder receives during the time between when the bond is issued and when it matures.