Review 1 - Oregon State University Department of Economics McMullen Fall 2007 Economics 330 Review Sheet#1 Key Concepts/Definitions*Money supply M1

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Oregon State University McMullen Department of Economics Fall 2007 Economics 330 - Review Sheet #1 Key Concepts/Definitions: *Money supply: M1, M2, M3- pg 33 The Federal Reserve vs US Treasury? *Liquidity- 26 *Primary vs. Secondary financial markets- 47-48 *full bodied money/commodity/fiat money- pg 28 Direct vs. indirect finance *Compounding- *Present value- 97-98 *Financial instruments- 45-47 *Financial intermediary- pg 45 *Real vs. Nominal interest rates-436-437 *Term structure of interest rates/expectations theory *Capital gains/losses- 50? Interest rates and bond prices- 8,95,97/531-532 Loanable funds market- 99-103 *Federal funds rate- pg 53 Supply and demand for securities Prime interest rate *Default risk/junk bonds- pg 46/141 Ricardian Equivalence - 112 *Risk premium- 141 portfolio/diversification *Government securities: bills, notes, bonds Federal Reserve discount rate *barter economy- pg 20 *Commercial paper- 51-52 *current yield- pg46 Debt vs equity securities- pg 47 Expectations, liquidity premium, and segmented markets explanation for the term
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This test prep was uploaded on 04/08/2008 for the course ECON 330 taught by Professor Mcmullenstarr during the Fall '07 term at Oregon State.

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Review 1 - Oregon State University Department of Economics McMullen Fall 2007 Economics 330 Review Sheet#1 Key Concepts/Definitions*Money supply M1

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