Econ 251 Test 5 Study Guide Lecture

Econ 251 Test 5 Study Guide Lecture - ECONOMICS 251 TEST...

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ECONOMICS 251 TEST NO. 5 STUDY GUIDE TERMS Money : -Anything that is generally accepted in exchange for goods and services Barter : -The direct exchange of one good for another without the use of money. Money Supply: - Currency: - Checkable Deposits: - Payment to a 3 rd party in the form of a check Transactions Deposits: - Payment to a 3 rd party electronically Basic Money Supply (M1): - Currency held by the public, plus balances in transactions accounts. Total Money Supply M1, M2, M3 & L: - M2: o M1 + Balances in most savings accounts and $ market mutual funds. - Depository Institutions Financial Intermediary Central Bank Federal Reserve (FED): - Bank Reserves: - Assets held by a bank to fulfill its deposit obligations. Required Reserves: - The minimum amount of reserves a bank is required to hold. - Equal to the required reserve ratio times transactions deposits. Excess Reserves: - Bank reserves in excess of required reserves.
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Required Reserve Ratio: - The banks ratio of a bank’s reserves to it total transaction deposits. -
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Econ 251 Test 5 Study Guide Lecture - ECONOMICS 251 TEST...

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