Notesale: Turn your study into money

Document Preview

Extracts from the notes are below, to see the PDF you'll receive please use the links above

---

An asset that can be easily
and quickly converted to
money with little or no loss
of value means that it is:
Assume that Fred the Goldsmith keeps 1
pound of gold in his safe to back each
100 pounds of paper receipts, if Bill the
Knight drops off an extra 5 pounds of
gold before heading off to fight dragons,
then Fred can issue _____ pounds in
additional gold receipts
...
If one bank obtains excess
reserves of $1,000, then checkable
deposits will ultimately increase by:

The banking authority of a
nation that is in charge of
ensuring a sound money supply
and conducting the nation's
monetary policy is termed a:

Banks pursue the goal
of profitability primarily
by:

liquid
...


central bank
...


A common method of
regulating banks is to:
Controlling the quantity of
money in circulation to stabilize
business cycles and to reduce
the problems of unemployment
and inflation is termed:

Currency, checkable deposits,
and assorted savings deposits
are the primary components
of ____ money
...


monetary policy
...


An example of a bank's
liabilities is:

certificates of deposit
held by customers
...

The gold that Fred the
Goldsmith keeps in his safe for
Bill the Knight is the equivalent
of ________________ in our
modern banking system
...


In modern economies,
money is primarily
composed of:

currency and checkable
deposits
...


In the history of the
development of money,
commodity money
evolved into the use of:
In the story of Fred the
Goldsmith, King Clarence
assumes the role most
comparable in the modern
banking system to:

In the story of Fred the
Goldsmith, one of the
banking functions performed
by Fred's goldsmith bank is:
A __________ is a nonprofit
financial intermediary that was
originally established to pool
members's savings to make
home mortgage loans
...


maintaining deposits
...


Modern commercial
banks keep reserves
primarily to:

process checks
...


One of the four key
functions fundamental
to the operation of
commercial banks is:

maintaining deposits
...

is that it:
One of the most important
problems that can result
because a bank practices
fractional-reserve banking is:

economy-wide financial
instability
...


Political liberals tend to
favor:

consumers over
producers
...


The standard of
deferred payment
function means money
is used:

as the common
denominator of future
payments
...


The three monetary
aggregates are:

M1, M2, and M3

Traditional banks differ the original institutions
from other types of
that first issued checking
banks in that they were:
accounts
...


Using money as the
medium of exchange
eliminates the need:

for barter transactions
...


making loans

---