| Dictionary, Encyclopedia and Thesaurus - The Free Dictionary 3,898,383,078 visitors served. |
Dictionary/ thesaurus | Medical dictionary | Legal dictionary | Financial dictionary | Acronyms | Idioms | Encyclopedia | Wikipedia encyclopedia | ? |
Draining Reserves |
0.01 sec. |
|
|
Draining reserves Federal Reserve System's course of action to tighten the money supply by (1) raising a bank's minimum reserve requirements, (2) selling bonds in the open market, (3) raising the rate at which banks borrow from the Fed, or (4) through draw-downs. Draining Reserves The practice of a central bank reducing the money supply. Examples of draining reserves include selling Treasury securities (or the equivalent in different countries), raising interest rates at which banks borrow from the central bank or from each other, and increasing banks' reserve requirements. All these measures are designed to reduce the amount of money in circulation in order to combat inflation. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
|
| Financial Dictionary |
| Free Tools: |
For surfers:
Free toolbar & extensions |
Word of the Day |
Help
For webmasters: Free content | Linking | Lookup box | Double-click lookup |
|---|