| A | B |
|---|
| actual reserves | The funds that a bank has on deposit at the Federal Reserve Bank of its district (plus vault cash) |
| balance sheet | a statement of the assets, liabilities, and net worth of a firm or individual at some given point |
| excess reserves | the amount by which a bnak's or thrift's actual reserve exceed its required reserves |
| fractional reserve banking system | a reserve requirement that is less than 100% of the checkable deposit liabilities of a commercial bank or thrift |
| monetary multiplier | the multiple of its excess reserves by which tbe banking system can expan dcheckable deposits an dthus the money supply (1 over reserve requirement) |
| required reserves | The funds that banks and thrifts must deposit with the Federal Reserve Bank or hold as vault cash to meet the legal reserve requirement |
| vault cash | the currency a bank has in its vauls and cash drawers |
| Money Monster | a large currency eating animal that lives inside bank vaults |
