What are
1)Required reserves
2)Excess reserves
3)Total reserves
100
This is what happens when the reserve requirement is raised
What is a fall in money supply
200
The time and effort you must spend before making an exchange
What are Transaction Costs
200
Define: saving's account
What is an interest-earning account
200
The location of our federal reserve bank
Where is Chicago
200
This is the deposit in the reserve account plus the vault cash
What is the total reserve
200
This is a government security
What is a promise to pay back a certain dollar amount
300
The first bankers
Who are the Goldsmiths
300
Causes interest rates to fluctuate
What is Supply and Demand
300
A type of account required by the Federal Reserve for all of its member banks to hold
What is a reserve account
300
Equation of the change in money supply
1/reserve requirement X Change in reserves of 1st bank
300
This is the interest rate one bank charges another bank for a loan.
What is a federal funds rate
400
The three functions of money
What is:
1)Medium of Exchange
2)Unit of Account
3)Store of Value
400
Three components that make up the money supply
What is
1)Currency
2)Checking Accounts
3)Traveler's Checks
400
The role of the Board of Governors
What is controlling and coordinating the Fed's activities
400
Used to create loans
What is excess reserve
400
This is the result of an open market purchase
What is an increase in money supply
500
A banking system, like in the United States, that creates money by holding a reserve of money deposited and lending with the remainder.
What is a fractional reserve banking system
500
Why credit cards are NOT money
What is placing a person in debt, and causing them to pay back the money at a later time.
500
Four roles of the Federal Reserve
What is
1)Control money supply
2)Supply economy with paper money
3)Hold bank reserves
4)Provide check-clearing services
5)Supervise member banks
6)Serve as lender of last resort
500
Sally put $4000 dollars into a checking deposit. The Federal Reserve's reserve requirement is 20%. This is the change in money supply
What is $20000
500
Bank A borrows a loan from the Federal Reserve, and money supply increases. The Federal Reserve did this.