Sides Games

Which M? Just currency

Which M? Currency Check deposits (demand deposits)

Which M? Currency Check deposits (demand deposits) Savings deposits Money markets

Type of $ in US (backed by NOTHING)

Money used to save for future Medium of exchange Store of value Unit of account

Money used to buy stuff Medium of exchange Store of value Unit of account

Money used to describe worth Medium of exchange Store of value Unit of account

Double Coincidence of wants

25% RR Money Multiplier?

Rate banks charge each other in the overnight market?

Rate Fed charges banks in the overnight market?

Most used Fed tool? The term for the tool, not the 2 possible actions

Recession- Fed should ____ MS

Inflation- Fed should ____ MS

Reserves, Money Supply, and Interest Rates Fed buys bonds

Money Supply Fed raises RR

Reserves, Money Supply, and Interest Rates Fed sells bonds

Money Supply Fed lowers RR

Reserves > Required Reserves

Increase in M1 in short run should AS/AD model

Increase in M1 in long run should Assuming an increase in “I” AS/AD model

Real Interest Rate is Nominal Interest Rate - ________________

The nominal rate on the Money Market graph is really the ______

3 expansionary policy moves

3 contractionary policy moves

Fed bond selling causes interest rates to

What is the opportunity cost for holding wealth as cash?

If interest rates decrease, what will happen to the quantity of money people hold as cash?

The right side of a T-account (balance sheet) includes liabilities and

If interest rates go down, bond prices on the secondary markets will go

Stock versus Bond- difference?

Fed OMO of security selling Price Level?