Macroeconomics mankiw 9th edition Chap 4
A store of value, a unit of account and a medium of exchange are three purposes of _______.
Stock of assets
Money is the _____ __ ____ that can be readily used to make transactions.
As a unit of account, money provides the terms in which _____ are quoted and ______ are recorded.
Store of value
As a ________, money is a way to transfer purchasing power from the present to the future
The medium of exchange, money, allows us to _______ goods and services.
Money with no intrinsic value is called, _____ money.
A good example of commodity money is ______.
When people use gold as money, or paper money you can exchange for gold the economy is considered to be on a _______ _______.
Monetary policy is the _________ control over money.
The primary way in which the fed controls the money supply is through _____- ______ ______.
Open-market operations are the ______ and _____ of government bonds.
The sum of outstanding paper money and coins.
Demand deposits are the funds people hold in their _______ ______.
C; M1; M2
The three measures of money used by the government are ___, ____ and ____.
Currency plus demand deposits, traveler’s checks and other checkable deposits.
M1+ retail money market mutual fund balances, saving deposits incl. Money Market deposit accounts, and small time deposits
= Currency, C + Demand Deposits, D
The process of transferring funds from savers to borrowers is called?
Fractional-reserve banking, a system under which banks keep a fraction of their?
The use of borrowed money to supplement existing funds for purposes of investment is _____.
Capital requirment requires banks to _____ a certain amount of funds.
Pg. 93 4-3