Money

Money that has value because the Government declared that it is money.

• Fiat Money
• Commodity Money
• Currency
• Coins

The CPI is up, and housing starts are at a fifteen-year high

• Tight Money 
• Easy Money 
• Do Nothing 

Percentage of deposits that the Fed requires banks to hold back and not lend out

• Fed Fund Rate

• Reserve Requirement Rate

• Discount Rate

• I.O.U Rate

What dollar amount should appear in place of the letter S in the table?

• $200,000

• $1,800,000

• $2,200,000

• $1,800

What percentage should replace the Y in the table?

• 20%

• 5%

• 10%

  15%

• 2%

Which items on the graph are part of M1?

• currency and savings deposits

• currency, traveler’s checks plus demand deposits, and other checkable deposits

• other checkable deposits, money market mutual funds, and small time deposits

• currency, savings deposits, and small time deposits

Which of the following is not on the asset side of a bank balance sheet?

• Total Reserves
• Excess Reserves
• Demand Deposits
• Capital, buildings, etc.

If the money multiplier has increased, which of the following is true

• The reserve requirement has decreased

• the discount rate has decreased

• Excess reserves have decreased

• The Fed conducted open market operations

If a demand deposit of $50,000 is made, and the Reserve Requirement is 20%, what is the amount of loans (new money) created?

• $160,000

• $250,000

• $220,000

• $200,000

To calculate the Money Multiplier  ___________

• 1/ discount rate
• 1/MPS
• 1/ Reserve Requirement
• MPC(Spending Multiplier)