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Introduction to the Federal Reserve definitions

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Termini in questo insieme (15)

  • Federal Reserve
    Central banking system of the United States, established in 1913 to address financial instability and oversee monetary policy.
  • Central Bank
    Institution responsible for managing a nation's currency, money supply, and banking system stability.
  • Board of Governors
    Seven-member leadership group, appointed by the President and confirmed by the Senate, serving as the Fed's highest authority.
  • Chairperson
    Leader of the Board of Governors, serving a four-year term and guiding the direction of U.S. monetary policy.
  • Federal Reserve Banks
    Twelve regional institutions, each with its own president and board, overseeing banking operations in their districts.
  • Federal Open Market Committee
    Policy-making body composed of Board members and regional presidents, meeting regularly to set monetary policy.
  • Monetary Policy
    Actions taken to control the money supply and influence economic conditions, mainly through open market operations.
  • Bank Run
    Situation where many depositors withdraw funds simultaneously, often due to fears of bank insolvency.
  • Lender of Last Resort
    Role of providing emergency funds to banks facing liquidity crises to prevent systemic collapse.
  • Discount Loan
    Short-term credit extended by the Fed to banks, typically at the lowest available interest rate.
  • Discount Rate
    Interest charged by the Fed on loans to commercial banks, influencing overall lending rates.
  • Federal Funds Rate
    Interest rate for overnight loans between banks, slightly higher than the discount rate.
  • Open Market Operations
    Buying and selling of government securities by the Fed to adjust the money supply.
  • Reserve Requirement
    Minimum fraction of deposits banks must hold as reserves, set by the Fed to influence lending.
  • Bank Failure
    Event where a bank cannot meet withdrawal demands, often leading to insolvency and loss of public confidence.