KEY CONCEPTS

Money

Store of value

Unit of account

Medium of exchange

Fiat money

Commodity money

Gold standard

Money supply

Monetary policy

Central bank

Federal Reserve

Open–market operations

Currency

Demand deposits

Reserves

100–percent–reserve banking

Balance sheet

Fractional–reserve banking

Financial intermediation

Bank capital

Leverage

Capital requirement

Monetary base

Reserve–deposit ratio

Currency–deposit ratio

Money multiplier

High–powered money

Discount rate

Reserve requirements

Excess reserves

Interest on reserves

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