CHAPTER 15 NOTABLES.

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Presentation transcript:

CHAPTER 15 NOTABLES

Federal Reserve Created in 1913 Central bank of United States Made up of 12 district banks and 25 branch banks

Assets Properties, Possessions, and claims on others

Monetary Policy Federal Reserve’s plan for expanding and contracting the money supply

Tight Money Policy Federal Reserve restricts growth of money supply and drives interests rates up Slows economics growth

Easy Money Policy Federal Reserve allows money supply to grow making interest rates fall Stimulates economy

Prime Rate The best or lowest interest rate commercial banks charge their customers

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