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12 terms

Ch. 4 Functions of the Fed

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Beige Book
a consolidated report of regional economic conditions in each of the 12 Fed Resv districts
Board of Govs
a body made up of 7 individual members AKA Fed Resv Board
Defensive Open Market Ops
ops that offset the impact of other conditions on the level of reserves
Discount Rate
the interest rate charged on Fed district bank loans to depository institutions
Dynamic Open Market Ops
ops implemented to increase or decrease the level of reserves
Fed Funds Rate
interest rate charged by banks on short-term loans to each other
Fed Open Market Committee (FOMC)
a body made up of 7 members of the Board of Govs and president of 5 district banks
Fed Resv District Bank
components of the Fed Resv System
Each bank is allowed to trade govt securities
Reserve Requirement Ratio
the proportion of depository institutions accounts that must be held in reserve
Policy Directive
the document passed from the FOMC to the Trading Desk stating the FOMC's decision on the target supply of money
Repurchase Agreement
the purchase of securities with an agreement to sell them back at a specified date in the near feature
Trading Desk (Open Market Desk)
open market operations are carried out here