A paper claim that entitles the buyer to future income. Does not have a physical appearance.
What is a Financial Asset?
100
This banking institution oversees and regulates the banking system, and controls the monetary base (supply of money). It was created in 1913 in response to the economic Panic of 1907.
What is the Federal Reserve.
100
The United States dollar used to be able to be exchanged for 35 dollars per ounce of gold. What kind of money is this?
What is commodity-backed?
100
interest is symbolized by what letter?
What is "r"?
100
What is on the X axis and what is on the Y axis?
What is Quantity of Loans and the interest rate?
200
What you owe on something that entitles someone else to future income.
What is a Liability?
200
The Fed uses this ratio to keep banks from going into bankruptcy.
What is the required reserve ratio?
200
This role of money means that you can store your money in the bank for years and it will likely be worth the same as it was orginally or more.
What is store of value?
200
If you are trying to find out how much money to lend today if you want to make one dollar a year from now, what formula would you use?
What is $X= 1/(1+r)
200
Only loans with __________ at or above equilibrium r will be both demanded and supplied.
What is the rate of return? (revenue-cost)/cost
300
When our government is borrowing more than it recieves in tax revenue.
What is a budget deficit?
300
When the Fed buys Treasury bills, what happens to the supply of money?
It increases.
300
What are the two Money Aggregates (Measurement types)?
What is M1 and M2?
300
How would you solve for this...
The amount received one year from now as a result of lending $X today...
What is What is $x(1+r)
300
If people begin to expect their businesses to perform well, this will shift the demand curve for loans....
What is right?
400
This goal of our financial system helps turn things into cash quickly.
What is provide liquidity?
400
If a bank has excess reserve it will most likely do what with those reserves?
What is loan them out.
400
A checkable bank deposit is what type of money aggregate?
What is M1?
400
In the money market, how does the fed control the interest rate?
What is by determining the supply of money?
400
Capital inflows make people save less of their money. What is this shift?
What is left on the supply curve for loans.
500
When we diversify, we are attempting to reduce this.
What is risk.
500
The $X/rr
What is the money multiplier formula?
500
A savings deposit increases what type of money?
What is M2
500
The interest rate is 100%. What is the amount recieved after 2 years as a result of lending 5 dollars?
What is $20?
500
When the government borrows too much that it replaces business investment, this is called...