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FICA: The abbreviation for Federal Insurance Contributions Act, passed in 1939, which established payroll deductions from wage-earning employees and the employers for the Social Security system. This is the noted Social Security tax that wage earners pay and which is then used to provide Social Security benefits to the elderly, disable, and qualified dependents.
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Lesson 18: Banking | Unit 3: Reserve Banking
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Page: 12 of 24
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Topic:
Legal, Required, and Excess Reserves
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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.
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EMPIRICAL Based on or relating to the collection or analysis of real world data. The term empirical is commonly used as a modifier to provide contrast with theoretical. Whereas theoretical refers to abstract representations, empirical indicates actual real world observations.
Complete Entry | Visit the WEB*pedia |
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WHITE GULLIBON
[What's This?]
Today, you are likely to spend a great deal of time watching the shopping channel wanting to buy either a T-shirt commemorating the 2000 Presidential election or a really, really exciting, action-filled video game. Be on the lookout for infected paper cuts.
Your Complete Scope
This isn't me! What am I?
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Cyrus McCormick not only invented the reaper for harvesting grain, he also invented the installment payment for selling his reaper.
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"Courage is the ladder on which all the other virtues mount." -- Claire Boothe Luce, diplomat, writer
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JPUBE
Journal of Public Economics
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