A Lexicon of Economics by Kenyon A. Knopf

By Kenyon A. Knopf

Instead for in-depth definitions and ideas, this e-book is a one-volume resolution to economics, banking, and company questions. With encyclopaedic aspect, the trems are outlined, techniques defined and relationships illustrated. A separate component to abbreviations and acronyms might help the reader to spot financial and company teams. This publication is desinged to be of curiosity to non-professionals and scholars of economics, scholars and execs in company, accounting, sociology and legislations.

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See Currency, Fiat Money. B A N K R E S E R V E S All banks are required by law to keep reserves against the funds that are deposited with them. Required reserves for depository institutions must be held in deposits with district Federal Reserve Banks or in vault cash (the latter constituting a minute fraction of the total). Nonmembers of the Fed may maintain reserve balances directly with a Federal Reserve Bank or indirectly as deposits with certain approved institutions which in turn hold deposits with the Fed.

The loans seem to be used to ease cash-flow problems and as insurance, but they have not supported prices. Many critics have recommended a straight subsidy as a cheaper program for the government, and one that does not produce poten­ tially adverse market results. S. Agriculture Department instituted a subsidy system of target prices and "deficiency" pay­ ments which runs parallel to the CCC loan program. However, most agricultural markets are international and such subsidies run counter to efforts of the General Agreement on Tariffs and Trade (GATT) to eliminate subsidies that affect international trade.

C O I N S Metallic money. At one time coins contained an amount of metal whose value as bullion would equal the money value desig­ nated on the coin. For example, a dime would contain ten cents worth of silver bullion. A silver dollar could be melted down and the silver content sold for a dollar. It was money of intrinsic value. Obviously, problems could arise because of fluctuations in the market price of the metals used. When the market price of gold or silver rose above the minted value of coins, they would be melted down and sold for bullion and would thereby disappear from circula­ tion.

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