Money and banking
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Money and Banking. 5 Points. Authority to appoint the Federal reserve Chair?. That’s right!. Who is the President?. 5 Points. The type of demand needed to purchase goods and services in the economy. That’s right!. What is transactional demand?. 5 Points.

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5 points
5 Points

  • Authority to appoint the Federal reserve Chair?

That s right
That’s right!

  • Who is the President?

5 points1
5 Points

  • The type of demand needed to purchase goods and services in the economy.

That s right1
That’s right!

  • What is transactional demand?

5 points2
5 Points

  • Currency is a part of M1, M2 and/or M3. Which one or combination?

That s right2
That’s right!

  • All three?

5 points3
5 Points

  • The three primary tools the FED has to increase or decrease the money supply..

That s right3
That’s right!

  • Open market operations

  • Discount rate

  • Required reserve ratio

5 points4
5 Points

  • The type of function money serves when you purchase a new car.

That s right4
That’s right!

  • Medium of Exchange

10 points
10 Points

  • Current FED Chair

That s right5
That’s right!

  • Who is Ben Bernanke?

10 points1
10 Points

  • This type of demand for money varies inversely with interest rates.

That s right6
That’s right!

  • What is asset demand?

10 points2
10 Points

  • The position of the money supply curve.

That s right7
That’s right!

  • What is Vertical?

10 points3
10 Points

  • When you put money into a savings account you are using money as this.

That s right8
That’s right!

  • What is a store of value?

10 points4
10 Points

  • The FED should do this in its open market operations if it wants to get us out of a recession.

That s right9
That’s right!

  • What is buy bonds?

15 points
15 Points

  • How many federal reserve banks there are in the U.S.

That s right10
That’s right!

  • What is 12?

15 points1
15 Points

  • If NGDP increased we would expect this to happen to the money demand curve.

That s right11
That’s right!

  • What is shift right?

15 points2
15 Points

  • The more common name for demand deposits.

That s right12
That’s right!

  • What are checking accounts?

15 points3
15 Points

  • When you are a contestant on the price is right and you are guessing the value of a can of peas you are using money as this.

That s right13
That’s right!

  • What is a unit of account?

15 points4
15 Points

  • The impact an easy monetary policy has on Investment spending.

That s right14
That’s right!

  • What is increases it?

20 points
20 Points

  • The primary committee responsible for buying and selling government securities.

That s right15
That’s right!

  • What is the federal open market committee?

20 points1
20 Points

  • If the government decrease spending on public works projects we would expect this to happen to the money demand curve.

That s right16
That’s right!

  • What is shift left?

20 points2
20 Points

  • The type of money that is easily convertible into M1.

That s right17
That’s right!

  • What is near monies?

20 points3
20 Points

  • The term that describes money that is not backed by gold or silver but backed by the faith of the U.S. government and its citizens.

That s right18
That’s right!

  • What is Fiat Money?

20 points4
20 Points

  • The impact of a tight monetary policy on Aggregate Demand.

That s right19
That’s right!

  • What is shift it to the left?

25 points
25 Points

  • The committee that is in charge of setting the Discount rate and the Required Reserve Ratio.

That s right20
That’s right!

  • What is the Board of Governors?

25 points1
25 Points

  • The type of relationship fiscal policy and money demand have.

That s right21
That’s right!

  • What is direct?

25 points2
25 Points

  • Which of the following are NOT a part of M2: Cash, Currency, savings accounts, stocks, credit cards. HINT there is more than one answer.

That s right22
That’s right!

  • What are stocks and credit cards?

25 points3
25 Points

  • The official name of paper currency as it is printed.

That s right23
That’s right!

  • What are Federal Reserve Notes?

25 points4
25 Points

  • The appropriate monetary policy response to fiscal crowding out.

That s right24
That’s right!

  • What is increase the money supply?

Click here for final Jeopardy

Final jeopardy

Final Jeopardy

The final Jeopardy Question is :

Monetary Policy and Equilibrium GDP its effects on i-rates, Investment, AD, and RGDP. Additionally, what is the canceling potential and the effect on net exports?


















Real rate of interest, i


Quantity of money demanded and supplied

Amount of planned investment, I


  • Long Run Effects:

  • Increased planned investment

  • will lead to increased AS

  • 2. i down = international $ down,

  • X up

  • 3. Canceling effect: AD up, MD up,

  • i up, and I down, = AD down


Price level






Real domestic output, GDP