| A | B |
|---|
| Reserve Requirement | This regulation establishes the percent of total deposits that a bank nust have on hand. |
| The FED | The central banking organization of the United States. |
| Tight Money Policy | Relatively liitle money is available at relatively high interest rates, so inflation is controlled |
| Automated Clearing House | The office that processes electronic funds transfers and payment-related information. |
| Government Securities | Government investments such as treasury bills are sold to finance growth. |
| Electronic Funds Transfer | The method that enables the government, businesses, and individuals to make payments without requiring paper checks. |
| Discount Rate | The rate of interesr that is charged by the Fed to its member banks. |
| Open Market Operations | The process through which the Feds buys or sells government securities. |
| Monetary Policy | The Federal Reserve policy that affects the supply of money in circulation. |
| Loose Money Policy | Money is available at relatively low interest rates, so the economy expands. |
