Assets, Interest, and Money
The asset that gives a share of ownership in a company
What are stocks
What are assets
The minimum % of money that commercial banks must hold
What is the Reserve Requirement
Banking system where the change in money supply no longer affects the interest rate and the required reserves are 0%
What is Ample Reserves System
The basketball team Mr. Fogg enjoys watching whenever he is feeling sabbatical
Who are the Boston Celtics
Money demonstrates this property when someone says, "that is probably worth 5$"
What is unit of account
This is what happens to the demand for money when the price level rises
What is demand increase
The two macroeconomic objectives of the central bank
What are Price Stability and Full Employment
Purchase or sale of government securities by the central bank
What are Open Market Operations
Before delving into teaching, Mr. Fogg had a career doing this
What is Investment Banking
When added together these two macro terms are equal to the Nominal Interest Rate
What is the inflation rate and real interest rate
These are the amount of reserves that a bank holds above the reserve requirements and can be loaned out
What are excess reserves
Immediate result in the money market after an increase in the required reserves
What is the increase in nominal interest rate
Supply curve in the loanable funds market is made up of these
What are private/public savings?
Mr. Fogg's current automobile which he uses exclusively for his commute to BCA
What is the Volkswagen Atlas Cross Sport
This plus the Monetary base is equal to M1
What are checkable deposits
This is the result of the supply of money decreasing on Nominal interest rates
What is an increase in the Nominal Interest Rate
Gap that the central bank's monetary policy aims to decrease by making it more expensive to borrow
What is the inflationary gap
When government borrowing drives the interest rate up causing less investment spending and less economic growth in the future
What is Crowding Out
Mr. Fogg permitted this university to have him as their student during his first year of college.
What is Vanderbilt University?
This is what happens to the money supply when $100 is deposited and the required reserves are 5%
What is the money supply increases to $2000
Three determinants of the demand for money in the money market
What are the price level, changes in real GDP, changes in banking technology
United States of America interbank overnight lending rate
Federal Funds Rate
Mr. Fogg's favorite economist who also is known for theories in behavioral economics
Who is Richard Thaler