Search results for: “federal reserve system”
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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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Code Law Systems
Code Law Systems The term “code-law systems” is usually employed, as a legal term of art, with two different, if related, meanings. First, “code” refers to the reduction of the laws customarily observed by a particular people to a more or less permanent, organized, and written form through a comprehensive piece of legislation or codification.…
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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 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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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…
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Member Bank
A bank that holds membership in the Federal Reserve system. Membership is mandatory for banks with Federal charters. State- chartered banks may join if qualified. Member banks are obliged to subscribe a fixed portion of their capital and surplus to stock of their regional banks, must maintain prescr…
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Debt Monetization
The expansion of the national money supply through the issuance of public debt instruments. In the United States debt is monetized whenever the treasury issues bonds or bills; these instruments are purchased by the Federal Reserve system with a check. The check, once deposited, constitutes reserves …
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Bank
Resources See Also Credit Union Cooperative Collective Resources See Also Banking Banc Resources See Also Teller Resources See Also Pass-book Resources See Also National bank Resources See Also Mutual savings bank Savings and loan association. Compare Commercial bank […]
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Bank
Resources See Also Credit Union Cooperative Collective Resources See Also Banking Banc Resources See Also Teller Resources See Also Pass-book Resources See Also National bank Resources See Also Mutual savings bank Savings and loan association. Compare Commercial bank […]
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Central Bank
The principal monetary authority of a nation. In most commercially developed nations the central bank issues the currency and acts as banker for the government and the nation's commercial banks. By setting the rate at which it will lend money to commercial banks, the central bank […]