Economics Unit 7 Review

Easy money or tight money? Fed increases discount rate

Money can be used as a standard to compare relative value of different items because:

What is the maximum amount of money banks can lend?

Part of the Fed's job is to supervise member banks

Salt, beer and molasses are examples of:

Small time deposits

The reserve requirement is:

This AS/AD graph is the economic outcome of which kind of monetary policy?

A $100 bill is an example of:

Which is an example of Representative Money?

What function of money allows people to save it in bank accounts to accumulate wealth?

What is the discount rate?

What does this Money Market graph illustrate?

What are the opportunity costs of a tight money policy?

Large time deposits belonging to businesses

Who directs the Fed’s purchase and sale of government securities?

Most money in the M1 money supply is held in:

When banks make loans, they:

When the Federal Reserve manages the money supply to stabilize the economy it is called

This AS/AD graph is the economic outcome of which kind of monetary policy?

"Currency" refers to:

Easy money or tight money? Fed decreases federal funds rate

What does this Money Market graph illustrate?

Currency plus demand deposits

As prices increase, the purchasing power of money:

This function of money allows it to be accepted in exchange for goods and services.

Easy money or tight money? Fed increases reserve requirement

Monetary policy takes longer to see results than Fiscal policy.

Easy money or tight money? Fed buys bonds

The Federal Reserve can print and issue paper money