Money & Banking Questions

User Generated

JJraqlll

Economics

Description

Unformatted Attachment Preview

Problem Set III Name & Section: ____________________________ Note: Academic researchers have shown the strong link between writing information by hand and memory retention. I strongly advise students to complete this by hand. Please take the time to make sure your writing is legible. 1. Money & Banking A) Define (in your own words, please do not use the book, or other online resources) and give a strong, unique, example for the following terms. Answers will be checked for originality. Store of Value: ____________________________________________ _____________________________________________________ _____________________________________________________ Automatic Stabilizer: _________________________________________ _____________________________________________________ _____________________________________________________ FOMC: _________________________________________________ _____________________________________________________ _____________________________________________________ Discount Rate: ____________________________________________ _____________________________________________________ _____________________________________________________ List the names and dates of the last four chairmen of the FED, starting with the current one: _____________________________________________________ _____________________________________________________ __________________________________________ _____________________________________________________ _____________________________________________________ Transaction Costs: _________________________________________ _____________________________________________________ _____________________________________________________ Federal Funds Rate: Section 1: Money Supply Look at the following H6 report from the Federal Reserve: http://www.federalreserve.gov/releases/h6/current/H6.pdf For the most recent available month and one year before that, fill out the following table (use seasonally adjusted figures): Category Most Recent One Year Before Percentage Change Currency Demand Deposits Traveler’s Checks Checkable Deposits at Commercial Banks Checkable Deposits at Thrift Institutions Savings Deposits at Commercial Banks Savings Deposits at Thrift Institutions Small-Denomination Time Deposits, total Retail Money Funds What is M1 in the most recent year? One year before? Percentage change? What is M2 in the most recent year? One year before? Percentage change? _________________ _________________ _________________ _________________ _________________ _________________ What category most caused the change in M2? _________________ Section 2: Fiscal Policy Graph the following situation for the economy: 1) Current Real GDP = $17.5T Potential Real GDP = $20T MPC = .9 How much would be necessary to close the recessionary / inflationary gap (circle one) using government spending?_____________ or taxes________________? 2) Current Real GDP = $21.5T Potential Real GDP = $20T MPS = .2 How much would be necessary to close the recessionary / inflationary gap (circle one) using government spending?_____________ or taxes________________? Section 3: Federal Budget & National Debt Take the Federal Budget Challenge and try your hand at fixing the problems with the economy. https://www.federalbudgetchallenge.org When taking this challenge, use your economic reasoning skills to decide what to cut and raise for the different spending/taxing categories. Copy & paste your summary below:
Purchase answer to see full attachment
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer

Here you go. In case of any further inputs, please let me know.All the best!I appreciate working with you!

Running head: ECONOMICS

1

Problem Set 3
Name
Course
Professor
Date

ECONOMICS

2
Economics

1. Money and Banking
a. Define the following terms
Store of value – this is something which can be a currency, commodity or any other
type of capital that people can use to handover the purchasing power form the present
period to the future.
Automatic Stabilizer- they are tools that are built into the federal budgets meant to
decrease the impact that is brought about by the business cycle.
FOMC- It’s a division of the Federal Reserve Board that is does the role of
determining the direction monetary policies take. The main work it does is giving
directions on the open market operations.
...


Anonymous
Just the thing I needed, saved me a lot of time.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Similar Content

Related Tags