quiz 4/7/2025 pt2 Flashcards
(8 cards)
1
Q
banks hold reserve ratios based on? (2)
A
liquidity concerns
loan profitability
2
Q
during recessions what happens?
A
banks hold more reserves
individuals hold more cash on hand
3
Q
when the banks hold more reserves then the money multiplier is _________
A
lowered
4
Q
M
A
money supply
5
Q
V
A
How many times a dollar is spent purchasing goods & services in a year
6
Q
p
A
price level of all finished G &S
7
Q
Y
A
All finished G&S SOLD in an economy
8
Q
the identity formula
A
M x V = P x Y
Nominal GDP
