Monetary policy is the process by which the monetary authority of a country controls the
supply of money, often targeting a rate of interest for the purpose of promoting economic
growth and stability.
The official goals usually include rel
In a system of perfectly flexible exchange rates, an expansionary U.S. monetary policy will
cause (assuming other things equal) the dollar to rise, fall, or stay the same relative to other
1. Goods produced in the U.S. are made
1. GDP Measurement (25 pts)
In the year 2007; there were 500 people living in the country of Krakozhia. There were two
rms, the Bubba Gump Company and a restaurant called the Shrimp Kitchen, and they
were both owned by consumers.
The Bubba Gump Com
HISTORY OF MONEY TEST
1. What is the definition of money?
a. Legal tender
b. Means of exchange
c. Status of wealth
d. All of the above
2. What is official currency?
a. Usually depicts an historic figure of a country
b. Specific to a particular country (eg
How to transfer your money to a Canadian bank
There are several ways to transfer funds to Canada:
Wire funds from your local bank to a Canadian bank. This method ensures
that your money is available immediately once transferred to Canada. You
Monetary Policy Quiz
1. To offsent a recession the fed should:
a. use contractionary monetary policy.
b. decrease required reserves, decrease the discount rate, and/or buy u.s. government securities
on the open market.
c. increase required reserves, decre
In the Middle Ages, the keeping of values with goldsmiths, persons trading with gold and
silver items, was common.
The goldsmith, as a guaranty, delivered a receipt.
these receipts came to be used to make payments, circulating from hand to
Some pros and cons of the policy "Too Big to Fail."
Too Big to Fail means that a business has be
Assignment: Interest Rates
Differences between three different types of interest rates: Federal Reserve,
a bank for business, and from a financial institution for a consumer loan.
The Federal Reserve uses and charges a discount rate to the loans