Chapter 2 continued31:MMDA- money market deposit accounts (6 withdraws per month)32:after $10000 CD’s become very different, larger CD’s can be sold33:stock mutual funds- value of shares can go up or down, money market mutual funds- managed to try to keep share price at $1, use money to buy liquid assets, earn interest- pay to shareholders34:reserve requirement of savings accounts = 0, put $ into “shadow account” to minimize money held in reserve and make more loans. Distorted measure of M1 money36:conduct of monetary policy is important- decisions made in effort to keep economy prosperous and inflation row (play a role in our economic health); if good decision then happy but if bad them there are problems. European central bank- only responsible for conduct of monetary currency39:Fed more than doubles the amount of assets ownedChapter 3:-Crashes always follow a bubble3:time value of money is important4:compound interest= future value of $15:
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