Details Title: Ch 11:Money Creation & Control Description: Unit 4 - Foundations of Macroeconomics Total Flash Cards: 9 Created: 01/22/2008 11:32:41		New Users: To study from this flashcard set, or to create your own your own study flash cards, REGISTER HERE. Existing Users: CLICK HERE. Additional Economics Flashcards
Cards in this set: Term Balance Sheet Definition A statement that summarizes assets (amounts owned) and liabilities (amounts owed) Term Reserve Ratio Definition The proportion of a bank's total deposits that are held in reserves Term Desired Reserve Ratio Definition The ratio of reserves to deposits that banks wish to hold so that they are sure to have enough cash to cover withdrawals by their customers Term Excess Reserves Definition Actual reserves minus desired reserves Term Deposit Multiplier Definition The number by which an increase in bank reserves is multiplied to find the resulting increase in bank deposits Term Currency Drain Definition An increase in currency held outside the banks Term Money Multiplier Definition The number by which a change in the monetary base is multiplied to find the resulting change in the quantity of money Term Explain how banks create money by making loans Definition P.161 Term Explain how the Bank of Canada influences the quantity of money Definition P.161