Chapter 13 All Materials PDF

Chapter 13 All - ECON 330 Money and Banking Fall 2007 Section 1 Tuesday and Thursday 11:30AM-12:45PM SMU 104 Section 2 Tuesday and Thursday

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ECON 330: Money and Banking Fall 2007 Section 1: Tuesday and Thursday, 11:30AM-12:45PM, SMU 104 Section 2: Tuesday and Thursday, 5:00PM-6:15PM, SRO B Prof. J. Santos South Dakota State University Student Learning Objectives: Chapter 13: Multiple Deposit Creation and the Money Supply Process [1] Identify and provide examples of liabilities of the Federal Reserve System. [2] Identify and provide examples of assets of the Federal Reserve System. [3] De&ne, in the context of Federal Reserve liabilities, the monetary base. [4] De&ne, compare and contrast required and excess reserves. [5] De&ne the term open market operations. [6] Identify the e/ects, on the monetary base, of open market purchases and sales of securities. [7] Explain why open market operations have relatively more predictable e/ects on the monetary base as opposed to reserves. [8] Explain how shifts from deposits to currency in circulation a/ect bank reserves and the monetary base. [9] Explain how changes in discount loans a/ect bank reserves and the monetary base. [10] De&ne the term ±oat. [11] Explain how changes in the ±oat a/ect bank reserves and the monetary base. [12] Use the simple deposit multiplier to compute the change in deposits that results from a change in bank reserves. [13] Identify and provide examples of two critiques of the simple deposit multiplier model.
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Chapter 13: Multiple Deposit Creation and the Money Supply Process Econ 330: Money and Banking all 007 Fall 2007 Prof. Joseph Santos Department of Economics South Dakota State University This outline draws from Frederic Mishkin’s Money, Banking and Financial Markets (2007) and, as such, contains copy written material. Please do not quote without proper citation.
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[1] Four Players in the Money Supply Process The Federal Reserve System Banks [1] Four Players in the Money Supply Process [2] The Fed’s Balance Sheet ] Open Market Operations Depositors Borrowers [3] Open Market Operations and the Monetary Base [4] An Open Market Purchase from a Bank [5] Discount Loans and the Of the four players, the Fed is the most important. The Fed’s conduct of monetary policy involves actions that affect its balance sheet.
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This note was uploaded on 04/09/2008 for the course ECON 330 taught by Professor Santos during the Spring '08 term at SD State.

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Chapter 13 All - ECON 330 Money and Banking Fall 2007 Section 1 Tuesday and Thursday 11:30AM-12:45PM SMU 104 Section 2 Tuesday and Thursday

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