Macro test 5

Question 1

Barter System

Question 2

What is money and the different types?

Question 3

3 Functions of money?

Question 4

What is liquidity and velocity?

Question 5

What is M1 and M2?

Question 6

What is an asset and liability?

Question 7

What is a bond and what is the time value of money?

Question 8

What are capital stocks and how does interest affect long term growth?

Question 9

Money market graph

Question 10

What are the three shifters of money demand and what are the three monetary policies that can shift the money supply?

Question 11

What is the discount rate and how does changing the discount rate affect the money supply and what is the federal funds rate?

Question 12

What is the reserve requirement and how does changing the reserve requirement affect the money supply? What is the money multiplies formula?

Question 13

What are open market operations? How do open market operations affect money supply?

Question 14

What are demand deposits? What are required reserves? What are excess reserves?

Question 15

What happens when reserve requirement goes down?

Question 16

What happens when FED sells bonds?

Question 17

How do you find nominal and real interest rate?

Question 18

Loanable funds graph

Question 19

What is crowding out?

Question 20

What are the shifters of demand and supply of loanable funds?

Question 21

What is the limited reserves economy and ample reserves economy?

Question 22

What can the fed do to change interest rates in an ample reserves economy?

Question 23

Reserve market model