Money
Money that has an intrinsic value
What is Commodity Money?
The bank for everyday customers like you and me.
What is a commercial bank?
The central bank of the united states
What is the Federal Reserve?
M0 is made up of this
What are Cash and Coins?
The cost of borrowing money
What is interest?
Money should be easy to carry and use.
What is a Medium of Exchange?
A bank specializing in stocks, bonds, and other financial assets.
What is an investment bank?
The central bank in Japan?
What is the Bank of Japan?
(NichiGin)
The real interest rate is adjusted for this
What is inflation?
Money should let us compare the values of items
What is Unit of Account?
This contains a list of assets and liabilities
What is a Balance Sheet?
What is the Reserve Requirement?
The groups that might demand money
What are the government, firms, and consumers?
When you SPEND more than you MAKE
Money should be durable and long lasting
What is Store of Value?
Money in a checking account is called this on a balance sheet for a bank.
What is Demand Deposit?
The interest rate that central banks charge for loans
What is the Discount Rate?
How banks create money.
What is the Money Multiplier effect?
What is Debt?
Money that is only worth something because an authority says it is.
What is Fiat Money?
What would be the value of the multiplier if the reserve requirement was 10%?
What is 10?
Buying and Selling Bonds by the central bank
What are Open Market Operations?
These aren't money, they're little pre-approved loans.
What are Credit Cards?