1. Sides Games

2. Which M?
Just currency

3. Which M?
Currency
Check deposits (demand deposits)

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

5. Type of $ in US (backed by NOTHING)

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

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

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

9. Double Coincidence of wants

10. 25% RR
Money Multiplier?

11. Rate banks charge each other in the overnight market?

12. Rate Fed charges banks in the overnight market?

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

14. Recession- Fed should ____ MS

15. Inflation- Fed should ____ MS

16. Reserves, Money Supply, and Interest Rates
Fed buys bonds

17. Money Supply
Fed raises RR

18. Reserves, Money Supply, and Interest Rates
Fed sells bonds

19. Money Supply
Fed lowers RR

20. Reserves > Required Reserves

21. Increase in M1 in short run should
AS/AD model

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

23. Real Interest Rate is
Nominal Interest Rate - ________________

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

25. 3 expansionary policy moves

26. 3 contractionary policy moves

27. Fed bond selling causes interest rates to

28. What is the opportunity cost for holding wealth as cash?

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

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

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

32. Stock versus Bond- difference?

33. Fed OMO of security selling
Price Level?