Search results for: “federal reserve”
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Federal Reserve Board
Concept of Federal Reserve Board Note: explore also the meaning of this legal term in the American Ecyclopedia of Law. Resources See Also Political Economy Public Policy
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Federal Reserve Board
Concept of Federal Reserve Board Note: explore also the meaning of this legal term in the American Ecyclopedia of Law. Resources See Also Political Economy Public Policy
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Gold Reserves
The gold held by a nation as reserves for currency issued. After U.S. abandonment of the gold standard in 1933, Congress mandated that the Federal Reserve banks would have to hold gold certificates, reflecting gold on deposit with the U.S. Treasury equivalent to at least 25 percent of currency […]
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Reserve Accounting
The practice whereby a bank posts reserves against its asset balances. The percentage of reserves is prescribed by the Federal Reserve system and varies from time to time as an instrument of monetary policy. There are two schemes for reserve accounting: 1. Lagged reserve accounting. Reserves are po…
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Federal Funds
Commercial bank reserves in excess of legally required reserves that are offered to other banks that are suffering temporary reserve deficiencies. These loans are for very short periods, usually overnight. Banks with funds in excess of requirements offer them to banks with deficiencies through a few…
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Discount Rate
Also known as the re-discount rate, the rate of interest charged by the Federal Reserve to member banks for advances. The rates are set every fourteen days by the regional Federal Reserve banks upon approval of the Board of Governors of the Federal Reserve system.The discount rate is a p…
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Discount Rate
Also known as the re-discount rate, the rate of interest charged by the Federal Reserve to member banks for advances. The rates are set every fourteen days by the regional Federal Reserve banks upon approval of the Board of Governors of the Federal Reserve system.The discount rate is a p…
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Repurchase Agreement
An arrangement whereby securities or foreign exchange is purchased for a short period of time with a prearranged plan for repurchase by the seller. The Federal Reserve system engages extensively in such deals, employing government securities, as a vehicle for regulating bank reserves….
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Regulation A
A pronouncement of the Federal Reserve Board (12 CFR 201) governing the creation of banker's acceptances. In essence, the regulation requires that an "eligible" banker's acceptance (i.e., one acceptable for discount at the Federal Reserve discount window) have a maturity of not mor…
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Regulation A
A pronouncement of the Federal Reserve Board (12 CFR 201) governing the creation of banker's acceptances. In essence, the regulation requires that an "eligible" banker's acceptance (i.e., one acceptable for discount at the Federal Reserve discount window) have a maturity of not mor…
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Regulation K
A pronouncement of the Federal Reserve system that permits both domestic and foreign banks to establish a "mother" Edge Act Corporation (read this and related legal terms for further details), which can establi…
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Rehypothecation
The act whereby a lender uses negotiable instruments or similar collateral left with him by borrowers as collateral for his own borrowings. Rehypothecation commonly occurs when a member bank pledges eligible customer collateral at the Federal Reserve for a loan. The original borrower's hypotheca…
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Readily Marketable Staples
Merchandise suitable for warehouse financing under eligible banker's acceptances, as was provided in U.S. Federal Reserve regulation A (for more details visit the resource). To qualify as a readily marketable staple, an item must …
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Open Market Operations
A principal vehicle of the Federal Reserve system in expanding or contracting bank reserves. The Federal Open Market Committee, consisting of the entire Board of Governors of the Federal Reserve system, plus representatives of five of the twelve regional Federal Reserve banks (the New York Federal R…
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Matched Sale-Purchase Transactions
An arrangement whereby Treasury bills are sold by the Federal Reserve system, through the Federal Reserve Bank of New York, for periods of one to seven days, with subsequent repurchase by the Federal Reserve. Such transactions, also known as reverse repurchase agreements, serve initially to reduce b…