What are the two most important instruments of the Fed?
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Open Market Operations and Quantitative Easing
An increase in real GDP or an increase in the price level will shift the money demand
curve to the _____________.
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right
,A decrease in real GDP or decrease in the price level will shift the money demand
curve to the _________.
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left
If you have good central bankers, which type of monetary policy (rules V.S. discretion)
is likely best?
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Discretion
M1 is a (narrow/wide measure)
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Narrow
When the fed "prints money", are they literally printing money?
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No, they are expanding bank deposits.
, The _____________ the interest rate on reserves is, the more likely it is banks will increase
the money supply.
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lower
What is the Reserve Ratio for the US economy?
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10%
The rate at which banks loan reserves to each other in an overnight market.
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Federal Funds Rate
What do commercial banks do?
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They provide financial intermediation, and they create money.
Give this one a try later!
Open Market Operations and Quantitative Easing
An increase in real GDP or an increase in the price level will shift the money demand
curve to the _____________.
Give this one a try later!
right
,A decrease in real GDP or decrease in the price level will shift the money demand
curve to the _________.
Give this one a try later!
left
If you have good central bankers, which type of monetary policy (rules V.S. discretion)
is likely best?
Give this one a try later!
Discretion
M1 is a (narrow/wide measure)
Give this one a try later!
Narrow
When the fed "prints money", are they literally printing money?
Give this one a try later!
No, they are expanding bank deposits.
, The _____________ the interest rate on reserves is, the more likely it is banks will increase
the money supply.
Give this one a try later!
lower
What is the Reserve Ratio for the US economy?
Give this one a try later!
10%
The rate at which banks loan reserves to each other in an overnight market.
Give this one a try later!
Federal Funds Rate
What do commercial banks do?
Give this one a try later!
They provide financial intermediation, and they create money.
