|
|
AGGREGATE MARKET SHOCKS: Disruptions of the equilibrium in the aggregate market (or AS-AD model) caused by shifts of the aggregate demand, short-run aggregate supply, or long-run aggregate supply curves. Shocks of the aggregate market are associated with, and thus used to analyze, assorted macroeconomic phenomena such as business cycles, unemployment, inflation, stabilization policies, and economic growth. The specific analysis of aggregate market shocks identifies changes in the price level (GDP price deflator) and real production (real GDP). However, changes in the price level and real production have direct implications for the unemployment rate, the inflation rate, national income, and a host of other macroeconomic measures.
Visit the GLOSS*arama
|
|
|
|
|
Lesson 18: Banking | Unit 3: Reserve Banking
|
Page: 12 of 24
|
|
Topic:
Legal, Required, and Excess Reserves
|
|
|
|
1. Legal reserves: - Vault cash and deposits with the Federal Reserve that can be used to satisfy the legal reserve requirements and are needed for daily operations.
2. Required reserves: - The vault cash and deposits with the Federal Reserve that they have to keep to back deposits.
3. Excess reserves: - Any reserves over and above required reserves.
- Excess reserves don't add to revenue and profit.
Two uses of excess reserves: - First: banks use them for loans.
- Second: banks use them for investment securities.
Important point: - Controlling excess reserves is key to controlling the nation's money supply.
|
|
|
|
|
|
|
ENTREPRENEURSHIP A special sort of human effort that takes on the risk of bringing labor, capital, and land together and organizing production. This is one of four basic categories of resources, or factors of production. The other three are labor, capital, and land.
Complete Entry | Visit the WEB*pedia |
|
|
|
More money is spent on gardening than on any other hobby.
|
|
|
"The greatest things ever done on Earth have been done little by little. " -- William Jennings Bryan
|
|
P/E
Price-Earnings Ratio
|
|
|
Tell us what you think about AmosWEB. Like what you see? Have suggestions for improvements? Let us know. Click the User Feedback link.
User Feedback
|
|
