Vocab 2
Terms
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- stagflation
- combination of stagnant economy and high inflation, almost 13 percent per year
- currency
- all media of exchange circulating in a country
- bank run
- when many people try to withdraw their money at once
- district reserve banks
- carry out bank functions for government offices in their area, examine member banks in the district, decide whether to loan bank funds, recommend interest rates, and implement policy decisions of the board of governors
- member bank
- any bank that is part of the Federal Reserve System
- discount rate
- the rate of interest that the Federal Reserve charges banks for short terms
- inflation
- collective rise in the supply of money and incomes and prices
- margin
- stock bought for a fraction of their price then resold for a profit, without the full purchase price of the stock ever having been paid
- Federal Deposit Insurance Corporation
- guarantees deposits against bank failures up to specific limits, currently $100,000
- Federal Open Market Committee
- makes discount rate decisions
- great depression
- began in 1929 and extended worldwide until about 1939, was the worst and longest economic crisis in the history of Western Industrialized nations.
- CAMELS
- SYSTEM TO EVALUATE SIX CRITERIA OF SAFETY AND SOUNDNESS. C- captial adequacy