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Money!
Banking and the Money Supply
Monetary Policies
Market For Loanable Funds
Reserve Market
100
The United States Dollar is an example of which type of money?
What is a fiat currency?
100
The money multiplier formula aka the deposit expansion multiplier.
What is 1/rr?
100
The vertical money supply curve Sm is controlled by what government body?
What is the Federal Reserve?
100
The difference between nominal and real interest rates is..
What is inflation?
100

Explain Ample Reserves 

Answers may vary 

200

Give me the shifters of Money Supply

OMO, RR, DR

200
If the legal reserve requirement is 25 percent, the value of the simple deposit expansion multiplier is…
What is 4?
200
FOMC stands for...
What is the Federal Open Market Committee. They decide Open Market Operations.
200
Loaners are ____________ and borrowers are ____________ in the market for loanable funds.
What are suppliers... demanders of loanable funds.
200

What is the most commonly used monetary policy tool by the federal reserve with limited reserves?

What are open market operations?

300

What type of money is a silver certificate?

representative Money

300
Where do banks keep their excess reserves? two possible answers.
What is in their vaults and the Federal Reserve?
300

Give two examples of contractionary monetary policies for limited reserves.

Answers vary.

300
When the government runs a budget deficit and must borrow money to meet its spending needs, the equilibrium interest rate soars. This then causes a market phenomenon called?
What is the crowding out effect?
300

What is the only effective tool for the FED when they have ample reserves? 

Interest on reserves 

400

When a financial transaction or trade is made using a currency. That currency is acting as a...

What is a medium of exchange?

400
Banks panics and runs were virtually eliminated by the introduction of this government entity.
What is the Federal Deposit Insurance Corporation.
400
Reserves, the money supply, and interest rates are most likely to change in which of the following ways when the Fed lowers the discount rate? Give an answer for each.
What are Reserves increase, the money supply increases, and interest decrease.
400
An increase in savings will have what impact on the supply of loanable funds?
What is increasing the supply of loanable funds?
400

If the fed buys bonds on the open market, how will bank reserves be impacted?

What is they will increase.

500

What composes M2 currency?

What is M2 includes M1, other time deposits.

500
Suppose the Federal Reserve buys $200,000 worth of securities on the open market. If the reserve requirement is 10 percent and the banks hold no excess reserves, what will happen to the total money supply?
What is 2 million dollars? #Dr. Evil
500

To fight recession in an ample reserves system, the Fed could…

lower IOR/ lower administered rates 

500

How do increases in foreign capital inflows impact the supply of loanable funds?

What is they increase the supply of loanable funds?

500

What should be done in an ample reserves system if there is high unemployment? 

Lower the IOR