WorksheetsDefinition Ch29 and Ch30
Total questions: 8
Worksheet time: 4mins
the set of assets in an economy that people regularly use to buy goods and services from other people
money
quantity theory of money
nominal variables
liquidity
the proposition that changes in the money supply do not affect real variables
classical dichotomy
commodity money
money
monetary neutrality
An institution designed to oversee the banking system and regulate the quantity of money in the economy
Federal Reserve (Fed)
central bank
inflation tax
bank
the resources wasted when inflation encourages people to reduce their money holdings
shoeleather costs
purchasing power
menu costs
Relative-Price Variability
the fraction of deposits that banks hold as reserves
fractional-reserve banking
reserves
reserve ratio
tax
the rate at which money changes hands
monetary neutrality
velocity of money
quantity equation
discount rate
the resources a bank’s owners have put into the institution
bank capital
capital requirement
leverage
open-market operations
the yardstick people use to post prices and record debts
medium of exchange
liquidity
unit of account
store of value
