Bank money refers to the currency created by commercial banks through the process of lending, utilizing the deposits they receive under a fractional reserve banking system.
Currency in circulation refers to the paper money and coins that are circulating within an economy and are counted as part of the total money supply, which also includes demand deposits in banks.
The Federal Funds Rate is the interest rate at which depository institutions (such as banks and credit unions) lend reserve balances to other depository institutions overnight on an uncollateralized basis. This rate is pivotal in the financial system as it influences many other interest rates, such as those for savings accounts, loans, and mortgages, and it's a key indicator of monetary policy direction in the United States.
