货银key

discount rate The interest rate that the Federal Reserve charges banks on discount loans. 210, 359

duration analysis A measurement of the sensitivity of the market value of a bank’s assets and liabilities to changes in interest rates. 221

equity multiplier (EM) The amount of assets per dollar of

equity capital. 214 excess reserves Reserves in excess of required reserves. 204,

359 gap analysis A measurement of the sensitivity of bank profits

to changes in interest rates, calculated by subtracting the amount of rate-sensitive liabilities from the amount of rate-sensitive assets. 221

interest-rate risk The possible reduction in returns associ- ated with changes in interest rates. 78, 208 liability management The acquisition of funds at low cost to

increase profits. 208 liquidity management The decisions made by a bank to

maintain sufficient liquid assets to meet the bank’ obliga- tions to depositors. 208

loan commitment A bank’s commitment (for a specified future period of time) to provide a firm with loans up to a given amount at an interest rate that is tied to some mar- ket interest rate. 219

loan sale The sale under a contract (also called a secondary loan participation) of all or part of the cash stream from a specific loan, thereby removing the loan from the bank’ balance sheet. 223

money center banks： Large banks in key financial

off-balance-sheet activities：Bank activities that involve trading financial instruments and the generation of income from fees and loan sales, all of which affect bank profits but are not visible on bank balance sheets. 223, 265

required reserve ratio The fraction of deposits that the Fed

requires be kept as reserves. 204, 359

reserves Banks’ holding of deposits in accounts with the Fed

plus currency that is physically held by banks (vault cash). 204, 359

secondary reserves Short-term U.S. government and agency securities held by banks. 204

vault cash Currency that is physically held by banks and stored in vaults overnight. 204

C13

Board of Governors of the Federal Reserve System：A board with seven governors (including the chairman) that plays an essential role in decision making within the Federal Reserve System. 337

Dual mandate：

Federal Open Market Committee (FOMC)：The committee that makes decisions regarding the conduct of open market operations; composed of the seven members of the Board of Governors of the Federal Reserve System, the president of the Federal Reserve Bank of New York, and the presidents of four other Federal Reserve banks on a rotating basis. 337

instrument independence The ability of the central bank to set monetary policy instruments. 347 Federal Reserve banks The 12 district banks in the Federal Reserve System. 337

nominal anchor A nominal variable such as the inflation rate, an exchange rate, or the money supply that monetary policymakers use to tie down the price level. 487

open market operations The Fed’ buying or selling of

bonds in the open market. 340, 359

time-consistency problem The problem that occurs when

monetary policymakers conduct monetary policy in a discretionary way and pursue expansionary policies that are attractive in the short run but lead to bad long-run outcomes. 488

C14

Borrowed reserve

Float

high-powered money The monetary base.

monetary base The sum of the Fed’s monetary liabilities

(currency in circulation and reserves) and the U.S.

Treasury’ monetary liabilities (Treasury currency in circu- lation, primarily coins). 358

multiple deposit creation The process whereby, when the Fed supplies the banking system with $1 of additional reserves, deposits increase by a multiple of this amount. 366

nonborrowed monetary base The monetary base minus dis- count loans. 381

open market purchase A purchase of bonds by the Fed. 359 open market sale A sale of bonds by the Fed. 359

simple deposit multiplier The multiple increase in deposits generated from an increase in the banking system’s reserves in a simple model in which the behavior of depositor and bank plays no role. 369

C15

defensive open market operations Open market operations

intended to offset movements in other factors that affect the monetary base (such as changes in Treasury deposits with the Fed or changes in float). 398

deposit facility：

discount window The Federal Reserve facility at which dis- count loans are made to banks. 400

dynamic open market operations Open market operations that are intended to change the level of reserves and the monetary base. 398

federal funds rate

lender of last resort Provider of reserves to financial institu-

tions when no one else would provide them in order to prevent a financial crisis. 402

longterm refinancing operation

main refinancing operation

marginal lending facility

marginal lending rate

matched sale–purchase transaction An arrangement

whereby the Fed sells securities and the buyer agrees to sell them back to the Fed in the near future; sometimes called a reverse repo. 400

overnight cash rate

primary dealers Government securities dealers, operating out of private firms or commercial banks, with whom the Fed’s open market desk trades. 399

repurchase agreement (repo) An arrangement whereby the

Fed, or another party, purchases securities with the under- standing that the seller will repurchase them in a short period of time, usually less than a week. 400

reverse transaction

standing lending facility

swap line

target financing rate C16

Information targeting

intermediate target Any of a number of variables, such as monetary aggregates or interest rates, that have a direct effect on employment and the price level and that the Fed seeks to influence. 414

monetary targeting

natural rate of unemployment The rate of unemployment consistent with full employment at which the demand for labor equals the supply of labor. 412, 590

NAIRU (nonaccelerating inflation rate of unemployment) The rate of unemployment when demand for labor equals supply, consequently eliminating the tendency for the inflation rate to change. 429, 590

onaccelerating inflation rate of unemployment See NAIRU. 429, 590

Operating instrument