Chapter 28 Key Terms Crossword

when depositors race to the bank to withdraw their deposits for fear that otherwise they would be lost
institution which conducts a nation’s monetary policy and regulates its banking system
moving in the opposite direction of the business cycle of economic downturns and upswings
reserves banks hold that exceed the legally mandated limit
the interest rate charged by the central bank on the loans that it gives to other commercial banks
the speed with which money circulates through the economy; calculated as the nominal GDP divided by the money supply
the percentage amount of its total deposits that a bank is legally obligated to to either hold as cash in their vault or deposit with the central bank
an insurance system that makes sure depositors in a bank do not lose their money, even if the bank goes bankrupt
the central bank selling or buying Treasury bonds to influence the quantity of money and the level of interest rates
the purchase of long term government and private mortgage-backed securities by central banks to make credit available in hopes of stimulating aggregate demand
a rule that the central bank is required to focus only on keeping inflation low
the interest rate at which one bank lends funds to another bank overnight