Short Answer Questions.Please address the following questions. Your total page requirement is 3-5 pages.
- What makes money an imperfect store of value?
- Suppose that someone deposits $10,000 into a bank. Assuming a reserve requirement ratio of 20%, what will be the eventual increase in checking account balances?
- What would be a way for the Federal Reserve to stimulate a sluggish economy?
- True/False Statements. Indicate if the statement below is True or False. You must support your answer with a few sentences for each statement.
- Credits cards are NOT a part of the M1 or M2 money supply.
- When one individual writes a check to another individual the money supply will not be changed.
- The Federal Reserve System is the central bank of the United States.
- When the Fed purchases government bonds, it decreases the money supply.
- LINKS TO USE TO HELP WITH THE ASSIGNMENT
Money and the Banking System, Podcast. http://www.pearsoncustom.com/mct-comprehensive/asset.php?isbn=1269879944&id=11385
Money and the Banking System, Interactive Tutorial. http://www.pearsoncustom.com/mct-comprehensive/asset.php?isbn=1269879944&id=12277
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