Term
| who was appointed as the Chair of the Board of Governors by President Reagan and was reappointed by the Presidents George H. W. Bush, Clinton, and George W. Bush? |
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Definition
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Term
| which of the following is not one of the functions of the Federal Reserve? |
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Definition
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Term
| which of the following types of financial institutions is required to belong to the Federal Res System? |
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Definition
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Term
| with respect to controlling the money supply, the law requires the Fed to take orders from |
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Definition
| no one - the Fed is an independent agency |
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Term
| on order for barter to occur, traders must have a... |
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Definition
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Term
| money provides a universally accepted means of payment so that people do not have to rely on barter. in this way, it functions as a... |
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Definition
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Term
| which assets is the most liquid? |
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Definition
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Term
| which is the best description of fiat money? |
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Definition
| legal tender that has no intrinsic value |
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Term
| in the US, the largest component if the M1 money supply is... |
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Definition
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Term
| which of the following is not included in the M3 money supply? |
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Definition
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Term
| which of the following groups oversees and administers the Fed reserve system? |
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Definition
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Term
| what is the primary function of the Federal Open Market Committee? |
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Definition
| directing the purchase and sale of government securities |
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Term
| prior to the Great Depression, if your bank failed, you would lose any funds you had on account with that bank. which was created to address this problem? |
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Definition
| the Fed Deposit Insurance Corporation (FDIC) |
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Term
| which of the following laws increased competition among financial institutions and gave the Fed greater control over nonmember banks? |
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Definition
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Term
| one key aspect of fractional reserve banking is that it |
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Definition
| allows banks to make loans |
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Term
| In a commercial bank's T-account, checkable deposits are recorded as... |
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Definition
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Term
| in order for a bank to earn as much profit as possible, its excess reserves should be |
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Definition
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Term
| a bank faces a required reserve ratio of 8%. if the bank has $300 mill of checkable deposits and $28 mill of total reserves, then how large are the bank's excess reserves? |
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Definition
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Term
| suppose the required reserve ratio of 5%, and currency and reserves total $12 mill. the max money supply that can be supported is... |
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Definition
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Term
| which of the following is a liability on the Fed's balance sheet? |
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Definition
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Term
| what interest rate does a bank pay when it borrows reserves from the Fed? |
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Definition
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Term
| lowering the required reserve ratio causes... |
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Definition
| the money multiplier to increase |
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Term
| which of the following is an appropriate monetary policy if the Fed wants to decrease the money supply? |
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Definition
| an increase in the discount rate |
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Term
| economists estimate that the total lag for monetary policy is about... |
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Definition
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Term
| which of the following would be classified as a liability for a bank? |
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Definition
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Term
| A bank's required reserves are either held as vault cash or... |
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Definition
| put on deposit with the Fed |
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Term
| a bank has $100 mill of checkable deposits. it has total reserves of $6 mill, of which $2 mill are excess reserves. what is the required reserve ratio? |
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Definition
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Term
| which event would increase the size of the "real-world" money multiplier? |
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Definition
| households hold less currency |
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Term
| if the required reserve ratio is 3%, what is the maximum amount of checkable deposits a bank can support if it has $1,500 in reserves? |
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Definition
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Term
| when the Fed conducts open market operations, it buys and sells... |
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Definition
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Term
| the Fed can lower the discount rate when it wants to... |
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Definition
| stimulate the money creation process |
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Term
| what interest rate does a bank pay when it borrows reserves overnight from another bank? |
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Definition
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Term
| which is longer-the fiscal policy lag or the monetary policy lag? |
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Definition
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Term
| the fed's Board of Governors can act relatively quickly hen it needs to adjust its monetary policy. This fact implies that monetary policy has a relatively short... |
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Definition
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Term
| a model that explains growth rates in real GDP per capita over the long run |
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Definition
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Term
| the quantity of goods and services that can be produced by one worker |
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Definition
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Term
| a change in the quantity of output a firm can produce using a given quantity of inputs. example using better machinery equipment, increase human capital and better means of organizing and managing production |
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Definition
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Term
| the knowledge & skills that workers acquire from education & training or from their life experiences |
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Definition
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Term
| exclusive right to a product for a period of 20 years from the date the product is invented |
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Definition
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Term
| relationship between real GDP per hour worked & capital per hour worked |
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Definition
| per worker production function |
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Term
| rights to individuals or firms who have exclusive use of their property including the right to buy or sell it |
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Definition
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Term
| ability of the government to enforce the laws of the country, particularly w/ respect to protecting private property and enforcing contracts |
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Definition
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Term
| prediction that level of GDP per capita in poor countries will grow faster than in rich ones |
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Definition
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Term
| total amount of spending in the economy which are the sum of consumption, investment, government & net export |
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Definition
| aggregate expenditure (AE) |
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Term
| a macroeconomic model that focuses on the relationship between total spending & real GDP assuming that the price level is constant |
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Definition
| aggregate expenditure model |
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Term
| relationship between consumption spending & disposable income |
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Definition
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Term
| the change in consumption resulting from a given change in real disposable income |
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Definition
| marginal propensity to consume (MPC) |
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Term
| change in saving divided by the change in disposable income |
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Definition
| marginal propensity to save (MPS) |
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Term
| model that explains short-run fluctuations in real GDP & price level |
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Definition
| aggregate demand & aggregate supply model |
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Term
| curve that shows relationship between price level & quantity of real GDP demanded by households, firms & government |
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Definition
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