| A | B |
|---|
| FED board of governors chairman | Alan Greenspan |
| 7 members | appointed to a 14 year term by pres with approval of Senate |
| Board of Governors of the FeD | made up of 7 members each seving 14 years and handle day to day political pressures |
| functions of the Fed | control money supply, supply economy with paper money |
| appropriation | funds set aside for s specific purpose |
| supply | the amount of goods produced to meet demand |
| consensus | general agreement |
| demarcation | the drawing of limits |
| compliance | accepting a demand or proposal |
| stability | the strength of the economy |
| price | the value of an object |
| transaction | a business deal |
| demand | the amount of a product that people are willing and able to buy |
| inflation | an increase in prices |
| recession | a period of reduced economic activity |
| money | something accepted as a measure of value |
| Federal REserve System | in charge of the nation's monetary policy |
| borrower | a person who recieves somethiung with the implied notion of returning it |
| Open Market Operations | purchases and sales between government and private citizens |
| lender | someone who lets out money for temporary use on condition with repayment with increase |
| money market | the FED wants to expand the money supply |
| capital market | the FED wants to reduce the money supply |
| repurchase agreement | contract giving someone who sold the good the right to get it back |
| credit | time given for payment of goods or services |
| discount rate | the rate the Fed gives other banks |
| reserve requirements | a percentage of deposits the banks must keep out of circukation |
| Federal Fund Rate | an amount of money set aside to ensure the FOMC's monetary goals |
| federal reserve note | paper money |
| securities | something given deposited or pleged to make certain the fullfillment of an obligation |
| bonds | government debt |
| deposit | money placed for safe keeping |
| mortgage | the amounnt of money paid to keep a property |
| GDp | the Gross Domestic Property |
