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Jeopardy!. The three functions of money. Medium of exchange Unit of account Store of Value. This includes cash coins and checkable deposits. M1. This includes cash coins and checkable deposits along with savings accounts and money market mutual funds. . M2.
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This includes cash coins and checkable deposits along with savings accounts and money market mutual funds.
The portion of a deposit that banks are required to keep on hand.
The quantity of money will only reach its theoretical limit if both of these things happen.
Banks lend all excess reserves and all cash is deposited into banks.
The interest rate that banks charge to each other for overnight loans.
When the Fed engages in open market operations it targets this interest rate
Assume a bond with a coupon of $1000 cost you $800 and it matures one year from today. What interest rate does the bond pay?
The Federal Reserve Bank launches a plan to buy billions of dollars worth of bonds. A monetarist would criticize this by suggesting it will only lead to this problem.
Fed policy of changing the equilibrium of the moneymarket to maintain economic stability
The number of times the average dollar moves through transactions in a given period of time.
Open Market Operations, Discount Rate, and Reserve Requirement
Increasing the reserve requirement will effect themoney supply in what way?
If spending on nominal GDP increases how will the demand formoney be affected?