Questions and Answers
What is the primary function of money in the economy?
Which of the following is NOT a measure of the money supply?
What is the most liquid measure of the money supply?
What is the term for the amount of money in circulation?
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Who oversees the Federal Reserve?
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What is the term for the ability to convert an asset into cash quickly and without loss of value?
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What is the main function of the 12 Federal Reserve District Banks scattered throughout the United States?
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What is the term for the minimum amount of funds that depository institutions must hold in the form of vault cash or deposits with the Fed?
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What is the result of a bank lending out excess reserves, and the borrower re-depositing the funds into the bank?
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What is the formula to calculate the Required Reserves (RR)?
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What is the term for the number that, when multiplied by a change in reserves in the banking system, yields the resulting change in the money supply?
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What happens to the money multiplier when the Required Reserve Ratio (rrr) increases?
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