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Class ID: 12383878
Password: Yellen
Good luck this week. E-mail with any questions. Use APA format on your own or through noodle tools. Remember the minimum source requirement is 5 with one as a book/monograph.
Email any questions. Submit by the due date: Saturday, 3/26 at NOON!
Friday, March 18, 2016
Tuesday, March 8, 2016
Money and Monetary Policy Review Topcs
Name______________________________________
Nadramia/AP Economics
Monetary Policy Review Sheet
Chapter 13
The three functions of money
M1, M2, M3
Fiat vs Commodity Money
3 types of demand for money
The money market:
factors affecting money supply
and demand for money
The Federal Reserve:
what does it control, how are Board members selected etc.
Chapter 14
How do banks create money:
goldsmith vs. banker
Reserve ratio
Reserve Requirement
New money created by a single bank (equal to that bank’s
excess reserves)
New money created by banking system (equal to excess
reserves times money multiplier
Money multiplier formula
Chapter 15
Monetary policy vs fiscal policy
Goals of monetary policy
Easy vs tight money policies
Effects on real GDP, price level
Effects on interest rates
Effects on real wages
3 tools of the Federal Reserve
Most/least frequently used tools
Graphs
The money market
Investment demand
Impact of monetary policy on the economy (AS/AD)
Wednesday, March 2, 2016
Ch. 15 Reading Guide
Good morning all! I hope you have your book and are ready to complete the reading guide. Please have it done for tomorrow.
1. Compile a list of bank assets and bank liabilities.
2. Define the 3 tools of monetary policy held by the Fed.
a. Open Market Operations
b. The Reserve Requirement
c. Benchmark Interest Rate (The Discount Rate and Federal Funds Rate)
3. Define easy money policy and tight money policy. Describe when the Fed. would wish to implement each.
4. Create a chart detailing how each tool described in #2 would be used during:
a. An easy money policy
b. A tight money policy
5. Describe how Janet Yellen is able to be both brilliant and beautiful at the same time.
1. Compile a list of bank assets and bank liabilities.
2. Define the 3 tools of monetary policy held by the Fed.
a. Open Market Operations
b. The Reserve Requirement
c. Benchmark Interest Rate (The Discount Rate and Federal Funds Rate)
3. Define easy money policy and tight money policy. Describe when the Fed. would wish to implement each.
4. Create a chart detailing how each tool described in #2 would be used during:
a. An easy money policy
b. A tight money policy
5. Describe how Janet Yellen is able to be both brilliant and beautiful at the same time.
Tuesday, March 1, 2016
Monday, February 22, 2016
Reading Guide Ch. 14 :)
Due Tues. 2/23
1. Please define each of the following terms:
a. Vault cash
b. Reserve ratio
c. Reserve requirement (required reserve ratio)
d. Required reserves
e. Excess reserves
Due Wed. 2/24
1. How is the money multiplier calculated?
2. What is the relationship between the reserve requirement and the money multiplier?
3. Why is the amount of money created through the money multiplier process usually a high estimate/overstatement of how much money is actually created by the banking system?
Due Thurs. 2/25
1. Please define each of the following terms:
a. Vault cash
b. Reserve ratio
c. Reserve requirement (required reserve ratio)
d. Required reserves
e. Excess reserves
Due Wed. 2/24
1. How is the money multiplier calculated?
2. What is the relationship between the reserve requirement and the money multiplier?
3. Why is the amount of money created through the money multiplier process usually a high estimate/overstatement of how much money is actually created by the banking system?
Due Thurs. 2/25
1)Tina deposits $500 that was in her sock drawer into a
checking account at the local bank.
a. By how much can this bank increase the money supply?
b. By how much can the banking system increase the money supply?
2) The central bank of Economania has $100 million in checkable deposits; the initial required reserve
ratio is 10%. The commercial banks follow a policy of holding no excess
reserves. The public holds no currency,
only checkable deposits in the banking system.
a. By how will the money supply change
if the required reserve ratio falls to 5%?
b. Assume that it is the Federal Reserve (central bank) that made the decision to decrease the required reserve ratio. On a properly labeled graph of the money market, show the results of this policy change on nominal ir and Q of money.
c. Considering the change to nominal ir you determine in b, illustrate on an AS/AD diagram the impacts of this change on output, PL, and UR.
Tuesday, February 9, 2016
Ch 13 Reading Guide
Due Wed.
1. Be sure to review the functions/types/characteristics of money from class.
2. Define and provide examples of the Fed's money classifications: m1, m2, m3
Due Thurs.
1. Define transactions demand for money (Dt) and illustrate it as a demand curve.
2. Define asset demand for money (Da) and illustrate it as a demand curve.
3. Define total demand for money (Dm) and illustrate it as a demand curve.
4. Why is slop of the Dt curve unlike that of the Da or Dm curve?
1. Be sure to review the functions/types/characteristics of money from class.
2. Define and provide examples of the Fed's money classifications: m1, m2, m3
Due Thurs.
1. Define transactions demand for money (Dt) and illustrate it as a demand curve.
2. Define asset demand for money (Da) and illustrate it as a demand curve.
3. Define total demand for money (Dm) and illustrate it as a demand curve.
4. Why is slop of the Dt curve unlike that of the Da or Dm curve?
Monday, January 11, 2016
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