Logo
Pattern

Discover published sets by community

Explore tens of thousands of sets crafted by our community.

Central Banking Terms

15

Flashcards

0/15

Still learning
StarStarStarStar

Capital Requirements

StarStarStarStar

Regulatory standards for banks that determine the minimum amount of capital a bank must hold in relation to its assets.

StarStarStarStar

Inflation Targeting

StarStarStarStar

A monetary policy strategy aimed at keeping inflation within a specified range, usually by adjusting interest rates.

StarStarStarStar

Federal Funds Rate

StarStarStarStar

The interest rate at which depository institutions trade federal funds (balances held at Federal Reserve Banks) with each other overnight.

StarStarStarStar

Quantitative Easing

StarStarStarStar

A monetary policy where the central bank purchases longer-term securities from the open market to increase the money supply and encourage lending and investment.

StarStarStarStar

Open Market Operations

StarStarStarStar

The buying and selling of government securities by the central bank to control the money supply and interest rates in the economy.

StarStarStarStar

Discount Rate

StarStarStarStar

The interest rate charged by central banks on loans to commercial banks. This rate influences the liquidity of money and can be used as a monetary policy tool to manage inflation and economic growth.

StarStarStarStar

Reserve Requirements

StarStarStarStar

The regulatory mandate that specifies the minimum amount of reserves a bank must hold against deposits. This affects the amount of money the bank can lend.

StarStarStarStar

Forward Guidance

StarStarStarStar

A central bank communication strategy to influence the financial decisions of market participants by providing information regarding future monetary policy actions.

StarStarStarStar

Central Bank Independence

StarStarStarStar

The degree to which a central bank can make decisions without political interference, allowing for the pursuit of long-term policy goals like controlling inflation.

StarStarStarStar

Negative Interest Rate Policy

StarStarStarStar

A monetary policy tool where central banks set nominal target interest rates below zero percent to incentivize banks to lend more and stimulate economic activity.

StarStarStarStar

Liquidity Adjustment Facility

StarStarStarStar

A tool used by central banks to aid banks in managing their liquidity position through the provision of short-term funds.

StarStarStarStar

Monetary Policy

StarStarStarStar

The process by which a central bank controls the supply of money in an economy, primarily through the manipulation of interest rates.

StarStarStarStar

Target Inflation Rate

StarStarStarStar

The optimal rate of inflation determined by a central bank to foster economic growth while maintaining the stability of currency.

StarStarStarStar

Central Bank Digital Currency (CBDC)

StarStarStarStar

A digital form of national currency issued and regulated by the central bank, intended to complement or replace traditional currency.

StarStarStarStar

Macroprudential Regulation

StarStarStarStar

Regulations aimed at reducing risks to the financial system as a whole (systemic risk) through policies affecting the financial industry.

Know
0
Still learning
Click to flip
Know
0
Logo

© Hypatia.Tech. 2024 All rights reserved.