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Central Banks

Author: Kate Eskra

Source: Image of private bank note, public domain, http://en.wikipedia.org/wiki/File:Bank_of_De_Soto_Dollar.JPG, Image of bank run, public domain, http://en.wikipedia.org/wiki/File:Bank_Run_c1933.jpg

Video Transcript
Terms to Know
Central Bank

A central banking authority that is typically charged with the regulation of money supply and interest rates.

Panic/Run

The financial separation of an individual from a depository institution as a result of perceived risk in the institution’s solvency.

Reserves

A portion of deposits required to be held by a bank; reserves usually are kept to maintain reserve requirements, as set by the Fed.