Modules 24 - 25

The amount to which some current amount of money will grow as interest accumulates over a specified period of time

• net present value

• present value

• future value

• past value

(of $1 realized one year from now) the amount of money you must lend out today in order to have $1 in one year; the value to you today of $1 realized one year from now; $1/(1 + r).

• future value

• present value

• net present value

• past value

The present value of current and future benefits minus the present value of current and future costs.

• future value

• present value

• net present value

• past value

The currency that banks hold in their vaults plus their deposits at the Federal Reserve.

• reserve requirements

• bank reserves

• reserve ration

• bank run

The fraction of bank deposits that a bank holds as reserves.

• bank reserves

• bank run

• reserve ratio

• bank requirements

A phenomenon in which many of a bank's depositors try to withdraw their funds due to fears of a bank failure.

• bank ratio

• bank reserves

• bank run

• reserve requirements

Rules set by the Federal Reserve that determine the required reserve ratio for banks.

• excess reserves

• reserve requirements

• bank ratio

• bank run

A bank's reserves over and above its required reserves.

• bank run

• excess reserves

• monetary base

• bank reserves

The sum of currency in circulation and bank reserves.

• money multiplier

• monetary base

• excess reserves

• reserve requirements

The ratio of the money supply to the monetary base; indicates the total number of dollars created in the banking system by each $1 addition to the monetary base.

• reserve requirements

• monetary base

• money multiplier

• excess reserves