Money and Banking

1. Money and Banking

2. 5 Points • Authority to appoint the Federal reserve Chair?

3. That’s right! • Who is the President?

4. 5 Points • The type of demand needed to purchase goods and services in the economy.

5. That’s right! • What is transactional demand?

6. 5 Points • Currency is a part of M1, M2 and/or M3. Which one or combination?

7. That’s right! • All three?

8. 5 Points • The three primary tools the FED has to increase or decrease the money supply..

9. That’s right! • Open market operations • Discount rate • Required reserve ratio

10. 5 Points • The type of function money serves when you purchase a new car.

11. That’s right! • Medium of Exchange

12. 10 Points • Current FED Chair

13. That’s right! • Who is Ben Bernanke?

14. 10 Points • This type of demand for money varies inversely with interest rates.

15. That’s right! • What is asset demand?

16. 10 Points • The position of the money supply curve.

17. That’s right! • What is Vertical?

18. 10 Points • When you put money into a savings account you are using money as this.

19. That’s right! • What is a store of value?

20. 10 Points • The FED should do this in its open market operations if it wants to get us out of a recession.

21. That’s right! • What is buy bonds?

22. 15 Points • How many federal reserve banks there are in the U.S.

23. That’s right! • What is 12?

24. 15 Points • If NGDP increased we would expect this to happen to the money demand curve.

25. That’s right! • What is shift right?

26. 15 Points • The more common name for demand deposits.

27. That’s right! • What are checking accounts?

28. 15 Points • When you are a contestant on the price is right and you are guessing the value of a can of peas you are using money as this.

29. That’s right! • What is a unit of account?

30. 15 Points • The impact an easy monetary policy has on Investment spending.

31. That’s right! • What is increases it?

32. 20 Points • The primary committee responsible for buying and selling government securities.

33. That’s right! • What is the federal open market committee?

34. 20 Points • If the government decrease spending on public works projects we would expect this to happen to the money demand curve.

35. That’s right! • What is shift left?

36. 20 Points • The type of money that is easily convertible into M1.

37. That’s right! • What is near monies?

38. 20 Points • The term that describes money that is not backed by gold or silver but backed by the faith of the U.S. government and its citizens.

39. That’s right! • What is Fiat Money?

40. 20 Points • The impact of a tight monetary policy on Aggregate Demand.

41. That’s right! • What is shift it to the left?

42. 25 Points • The committee that is in charge of setting the Discount rate and the Required Reserve Ratio.

43. That’s right! • What is the Board of Governors?

44. 25 Points • The type of relationship fiscal policy and money demand have.

45. That’s right! • What is direct?

46. 25 Points • Which of the following are NOT a part of M2: Cash, Currency, savings accounts, stocks, credit cards. HINT there is more than one answer.

47. That’s right! • What are stocks and credit cards?

48. 25 Points • The official name of paper currency as it is printed.

49. That’s right! • What are Federal Reserve Notes?

50. 25 Points • The appropriate monetary policy response to fiscal crowding out.