ECON308 Study Guide - Final Guide: Fractional-Reserve Banking, Monetary Base, Business Cycle
19 Sep 2016
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Review for test 3: chapters 13, 14, 15, poole lecture. If you are a voting member you are a member, if you don"t vote you are not a memebr. The chairman of the fed goes before congress 2 times a year. Factors that make fed independent and dependent on politicians. If the fed gets captured by a president. The creation of money: role of fractional reserve banking. The monetary base and how the fed manipulates it. Holds the key to how much monetary base is in the economy. Liabilities of the fed constitute the monetary base. The effects of money multiplier: interest on reserves (effects little e), the fed can change the required reserve ratio (rr) The effects of monetary base: open operations, and discount loans. The simple money supply model and the more complex model. Mb, rr, e, c and their effects on m.
