Econ 104 Exam 3

Money is...

• A medium of exchange

• Green paper

• store of value

• unit of account (or a way to gauge value

Commodity money has...

• Intrinsic Value

• Extrinsic Value

• Is physical

• pain

Fiat Money has...

• Intrinsic Value

• Extrinsic Value

• No b)tch3s

• a car brand

When governments print money too quickly, money loses value

• a new god

• Inflation

• Currency Debasement

• Mo money mo problems

transaction money is...

broad money is...

How banks create money

• Deposits

• Printing it

• L's

• Fractional reserves and Loans

When the Fed lowers MS, they're trying to what?

• Decrease AD and production

• Combat Inflation

• Sink Walmart

• Make Jeff Bezos cry

Why do banks borrow more when the Feds lower the discount rate?

• They want to encourage money flow

• Its insured

• The interest rates r lower and thus its less costly

• It make grug happy

When the Feds buy or sell Government securities, this is called what?

• Open Market Operations

• Taking the L

• Bond investment

• Banks fighting