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Provide the economic term/concept for each of the following descriptions. Write only the term or concept next to the question number.

1. Percentage of deposits at banks that must be kept on hand to meet short-term and emergency funding needs.
2. The percentage at which banks lend money to their most preferred clients.
3. The amount of money available in an economy.
4. The number of times the available money supply in the economy changes hands.
5. An account from which deposited funds can be withdrawn at any time.
6. A process of giving too many loans to micro-lenders, while increasing the risk of loans not being paid back.

6X1 (6)

Sagot :

GinnyAnsweridn

Final answer:

Defines various economic terms related to banking and monetary policies.


Explanation:

1. Reserve Requirement: Percentage of deposits at banks that must be kept on hand to meet short-term and emergency funding needs.

2. Federal Funds Rate: The percentage at which banks lend money to their most preferred clients.

3. Money Supply: The amount of money available in an economy.

4. Velocity: The number of times the available money supply in the economy changes hands.

5. Demand Deposit: An account from which deposited funds can be withdrawn at any time.

6. Credit Bubble: Giving too many loans to micro-lenders, increasing the risk of loans not being paid back.


Learn more about Banking and Monetary Policy Concepts here:

https://brainly.com/question/32624444


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