Money Multiplier Process
. . . . etc.
Total Change in Deposits
Total Deposits Initial Deposit
where R = the reserve requirement
If E = the percentage of their deposits banks
are holding as excess reserves
Indirect finance: Financial intermediation
Types of Financial Intermediaries
Money and Banking
Some Facts and Figures
How we got here: Some banking history
The Role of the Government
The Mortgage Industry
Introduction and Overview
Functions of Financial Markets: What Do
Financial Markets Do, and How Do They
Where Do Companies Get Funds?
Financial Intermediation vs. Direct Finance
Primary vs. Secondary Markets
Bank-Centered Systems vs. Market-C
Informal Structure of the Federal
Since its inception, the Federal Reserve System has
slowly acquired responsibility for promoting a stable
economy. This, in turn, has caused the Fed to evolve
into a more unified central bank.
Borrowing short and lending long
Minimizing the Cost of Borrowing
Minimizing the Cost of Monitoring Borrowers
Reasons for Bank Merger Activity
Antiquated banking regulations
How many dollars worth of bonds should the Central
Bank buy or sell? Show your calculations.
The money multiplier in this economy is 5 as was found above. The public does not hold
any cash. Thus, any reduction in MS has t
The Money Multiplier (Review)
The Federal Reserve System
Structure and Functions
How Does the Fed Conduct Monetary Policy?
Anatomy of an Open Market Operation (OMO)
Other Tools of the Fed