The Federal Reserve

amount of deposits that banks are required to keep on hand

• monetary policy
• money creation
• reserve requirements
• prime rate

actions that the Federal Reserve System takes to influence the real GDP and the rate of inflation

• open market operations 
• federal funds rate
• inside lag
• monetary policy

process by which money enters into ciruclation

• money creation
• open market operations
• check clearing
• tight money policy

interest rate that banks charge on short-term loans to their best customers

• prime rate
• discount rate
• federal funds rate
• outside lag

buying and selling of government securities in order to alter the supply of money

• open market operations
• tight money policy
• outside lag
• inside lag

time it takes to implement monetary policy

• inside lag
• outside lag
• prime rate
• federal funds rate

interest rate that the Federal Reserve charges commercial banks for loans

• discount rate
• monetary policy
• inside lag
• tight money policy

Monetary policy that reduces the money supply

• tight money policy
• money creation
• reserve requirements
• prime rate

interest rate that banks charge each other for loans

• federal funds rate
• money supply
• outside lag
• prime rate

time it takes for monetary policy to have an effect

• outside lag
• inside lag
• tight money policy
• prime rate