Demand Deposits
AP Macro Unit 4 Vocab #2

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•
Social Studies
•
12th Grade
•
Hard
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1.
FLASHCARD QUESTION
Front
Back
Money in a checking account at a bank.
2.
FLASHCARD QUESTION
Front
Assets
Back
Anything tangible or intangible that is owned
3.
FLASHCARD QUESTION
Front
Required Reserves
Back
The percent that banks must hold by law
4.
FLASHCARD QUESTION
Front
Liability
Back
Anything that is owed
5.
FLASHCARD QUESTION
Front
Excess Reserves
Back
The amount that the bank can loan out
6.
FLASHCARD QUESTION
Front
Federal Funds Rate
Back
The interest rate banks charge each other for one-day reserve loans.
7.
FLASHCARD QUESTION
Front
Fractional Reserve Banking
Back
Banks hold a small portion of deposits for withdrawals and loan out the rest.
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