1. CHAPTER 15 NOTABLES

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

3. Assets
Properties, Possessions, and claims on others

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

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

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

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