ECN 211Review Sheet for Midterm 3Spring Semester, 2011Chapters 14-171. What is money? What functions does money perform?
2. What constitutes the “official” money supply in the U.S.? (Answer:
3. Why are credit card charges not considered part of the money supply? (Answer:
4. What are the basic differences among the M1 and M2 definitions of the money supply? (Answer: The
5. What backs or gives value to the money supply today? How is this different from previous periods in American history?