| A | B |
|---|
| monetary policy | decisions that regulate the amount of money in the economy |
| fiscal policy | decisions about the government's taxing and spending |
| security or bond | government document for which you pay a fixed price now in exchange for a higher amount later |
| Federal Reserve System | group of twelve government banks that regulate the money supply |
| Federal Open Market Committee | part of the Federal Reserve System that buys and sells bonds |
| discount rate | interest rate the Federal Reserve charges other banks |
| reserves | amount of a bank's money that must be available for cash withdrawals |
| check clearing | the act of processing a check that transfers money |
| electronic money transfer | when money changes hands through the use of computers |
| interest | a percentage of money paid for a loan or debt |
| interest | money earned back for investing money |
| open market operations | the Fed's buying and selling of U.S. government securities |
| Organization of the Federal Reserve | board of governors, 12 district banks, 25 branch banks, and member banks |
