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REQUIRED RESERVES: The amount of vault cash and/or Federal Reserve deposits that a bank must legally keep to back outstanding deposits. These are the assets that bank regulators specify a bank must have to ensure the stability of deposits and conduct daily transactions.

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CIRCULAR FLOW

A model of the continuous movement of production, income, and the services of scarce resources that flow between producers and consumers. In particular, the circular flow is a model of the continuous production and consumption interaction among the four major sectors of the macroeconomy--household, business, government, and foreign--using the three macroeconomic markets--product, resource, and financial. The circular flow model provides a easy way of getting the "big picture" and of seeing how the key parts of the macroeconomy fit together.

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ORANGE REBELOON
[What's This?]

Today, you are likely to spend a great deal of time browsing through a long list of dot com websites wanting to buy either a flower arrangement in a coffee cup for your father or a how-to book on meeting people. Be on the lookout for the happiest person in the room.
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This isn't me! What am I?

John Maynard Keynes was born the same year Karl Marx died.
"Wise men speak because they have something to say; Fools because they have to say something. "

-- Plato, philosopher

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