Draining reserves

Draining Reserves
Draining Reserves definition :
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, ...

DRAINING RESERVES - Federal Reserve System's course of action to tighten the money supply by (1) raisin...
DRAW - Periodic advances of funds according to the schedule of payments in a construction loan agreemen...

Draining Reserves
Actions that are taken by the Federal Reserve to reduce the money supply in order to cut the funds available to banks for lending purposes. The Fed accomplishes this by: ...

This is sometimes known as draining reserves During periods of tight credit, borrowers face . stricter lending standards at rising interest rates, although interest rates may in fact be quite reasonable considering market demands for credit.

The transition point between a rising, expanding economy to a falling, contracting one.
Draining reserves ...

draining reserves The actions of the Federal Reserve System, taken to decrease the money supply... drawback A rebate on taxes or duty paid for imported goods which are subsequently exported in the same form or a different form.

See also: Banks, Federal Reserve System, Federal Reserve Bank, Reserve requirements, Bills