Money
What is a medium of exchange?
Something physical that can be used to buy something
Who is the head of the Federal Reserve
Jerome Powell
The profit a bank makes off of a loan
What is monetary policy?
Control of keeping money stable in an economy (a few different answers will be accepted)
What is Mr. Cole's coffee order today?
(hint - there is a combination of cream, sugar, and a flavor)
Large iced coffee with 1 cream, 1 sugar, 3 pumpkin
Why has the world changed to a paper currency?
It is more convienant
How many member banks that report to the Federal Reserve?
12 (based on geography)
What is a savings account? Does it collect more or less interest that other account types?
An account that people put money into that collects more interest over time, it is designed to not have money pulled out frequently.
What is the reserve requirement?
The minimum amount of physical money a bank must have on hand at a given time
What other classes does Mr. Cole teach besides Econ
AP Macro and Global 9
What does legal tender mean?
It is currency that is legally usable within a country (I can't use bottlecaps as a currency because it isn't recognized by the USA)
What are the two primary functions of the federal reserve?
Monetary policy and oversight of banks (you can word this a few ways)
What is a checking account?
An account designed for frequent transactions. Does not collect as much interest.
Who controls monetary policy?
The Federal Reserve
What was the main character's name in Moneyball (need first and last)
Billy Beane
It gives people value based on the amount of unspent money they have (savings)
What is the discount rate?
The % of interest a bank pays back to the FED for a loan.
What is a commerical bank?
A bank designed for commerce
Explain one way in which the Federal Reserve either contracts or expands the money supply
Different answers can be accepted
Who is the name of the main character's actor in The Founder
Michael Keaton
What are the 4 characteristics of money?
Portable
Durable
Divisible
Limited (gives it value)
What is moral suasion?
The idea that the FED can control economic habits by simply announcing/telling people what they plan on doing (example - saying they will increase interest rates will increase spending right now)
How do banks create liquidity?
They give out loans which in turn puts more physical money into the economy (physical money is referred to as "liquid")
Explain an OMO
OR
When the FED buys a government security/bond from a person to expand the money supply.
Name all the colleges Mr. Cole has taken a class from
(there are 4)
St. John Fisher
Brockport
Ithaca
MCC