Unit 4 Economics

4. funds rate – the interest rate banks charge each other on loans
7. – money raised by the government or money received by a firm doing business
8. requirement – the amount of money banks are required to keep and not lend out
9. – a physical item, such as bills and coins, use as a medium of exchange
10. money – money that has value simply because the government has decreed it to be an acceptable means to pay debts (e.g., Federal reserve Notes)
12. policy – strategy taken by public officials regarding taxing and spending
13. money – items that value in themselves other than being used as a monetary unit

1. market operations – a Federal Reserve practice of purchasing and selling government bonds intended to take money out or put money into the economy quickly
2. – a payment, cost, or the amount of money spent
3. – the exchange of goods and services for goods and services
5. policy – strategy taken by a central banking system to regulate the supply of money
6. money – items that have no value in themselves, but can be exchanged for something of value
11. rate – the interest rate the Federal Reserve Bank charges commercial banks for loans