Show:
MONEY
MONEY
FEDERAL RESERVE
FEDERAL RESERVE
MONEY SUPPLY
100
Anything accepted as a means of payment
What is money is now and what it has been in the past?
100
Money in checking account
What is part of M1?
100
Seven members appointed by the president of the United States.
What is the Board of Governors of the Federal reserve System?
100
Keep required reserves.
What is for every dollar deposited in the bank, the bank must keep a percentage?
100
Decrease the purchasing power of each dollar.
What is an excessive increase in the money supply?
200
Can be used to settle a debt
What is means of payment?
200

M1 plus savings deposits, small time deposits, and market fund deposits.

What is M2?

200
Federal Open Market Committee.
What is the Fed's monetary policy group?
200
Amount of reserves held above what is required.
What are excess reserves?
200
When does one sacrifice interest income.
What is holding money?
300
Unit of account, store of value, medium of exchange.
What is functions of money?
300
Savings and Loans association.
What is thrift institution?
300
Required reserve ratios, discount rate, and open market operations.
What is the Fed's policy tools?
300
Open market operations.
What is the Fed buying and selling of securities?
300
The quantity of money demanded equals the quantity of money supplied.
What is the money market is in equilibrium?
400
Exchange of goods and services directly for other goods and services.
What is barter?
400
Any asst that can be converted into money easily and with certainty.
What is liquid asset?
400
Buying government securities, clearing checks, making loans, accepting deposits.
What are actions carried out by banks?
400
Quantity of the money supply increases.
What is when the Fed buys government securities?
400
FDIC
What is a major deterrent to bank panics in the U.S.?
500

Store of value.

What is putting money under your bed functions as what type of money?

500
Nominal interest rate minus the inflation rate.
What is the formula for real interest rate?
500
The bank's assets and liabilities.
What is bank's balance sheets?
500
Real interest rate + inflation rate.
What is nominal interest rate formula?
500
Banks borrow reserves from one another on an overnight basis.
What is the Federal Funds Market?