ECON 2030 Chapter : Menu 22 Apr 15
Document Summary
Today"s menu: wednesday 22 april 2015: business, practice problems, chapter 30: 4, 5, 7, 9, 10, 20, 27, exams returned and reviewed in lab today/friday, final exam: thursday, 07 may, 5:30-7:30 pm in cox auditorium. Mb = bank reserves + currency in circulation; controlled by central banks. Mm reflective of non-banking public and commercial banks. More loans, greater multiplier, greater money supply in expansion. Less loans, smaller multiplier, smaller money supply in recession. Less loans, less borrowing, less spending, less jobs, making recession worse. Banks exasperates business cycle fluctuations: the federal reserve (fed): structure. Created to try to prevent financial panics from occurring. One of the youngest central banks in the world. Not technically one central bank, there are twelve. More frbs in the northeast because there is a greater. They have branches of the frb in other cities (nola has world. Oversee the 12 banks: 14-year, nonrenewable terms, chair: 4-year renewable term.
