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APR
Annual Per centage Rate is
the cost of credit of consumer
loans expressed as a percentage
rate per year.
ATM Automated Teller
Machine accessed by a magnetic
bank card allows consumers to
make deposits, obtain cash, pay
bills, and transfer money between
accounts, etc.
Beige Book (2003,
2002)
is published eight times per
year. Each Federal Reserve Bank
gathers anecdotal information on
current economic conditions in
its District through reports from
Bank and Branch directors and
interviews with key business
contacts, economists, market
experts, and other sources.
Discount Rate is the rate
charged to banks for a loan. The
Federal Reserve creates new money
for the loan. The Discount Rate
is used to control the flow of
money into the economy. The
higher Discount Rate allows more
money to flow into the system as
more banks borrow.
The Federal Reserve is twelve
banks with 25 regional branches.
The "Fed" loans money to consumer
banks, which in turn loan to
consumers. The "Fed" also audits
these banks, regulates the money
supply, controls currency, serves
as the U.S. government bank
(including issuing savings
bonds), serves as the
clearinghouse of national
check-clearing, and secures gold
reserves.
Long-Term Debt is debt
that matures in 5 years or
more.
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Money
Supply is the total stock of
money in the economy. Money is
grouped in money aggregates as
follows: M1, the currency
in circulation as cash and
checking accounts; M2,
includes M1 and includes savings
accounts and small time deposits,
such as CDs; M3 includes
M1 and M2 and includes financial
holdings of large institutions
that are not easily converted to
cash payments.
P* (pronounced P star) is
the statistical formula that
measures the effect of Federal
Reserve monetary policy on the
rate of inflation. The forumula
is defined P*=M2xV*/Q* where M2
is the money aggregate (see Money
Supply above), V* is the velocity
of money (the number of times it
turns over), and Q* is the
estimated value of the Gross
National Product.
Periodic Rate (defined as
a percentage monthly, daily or
other regular interval) is a
finance charge on consumer credit
loan balances.
Signature Loan is an
unsecured loan (usually to an
individual) that is backed
without collateral. The loans are
given to individuals with solid
credit who sign a promissory
note, legal evidence of the
debt.
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