Financial Sector Jeopardy Review

6. The measure of how fast an asset can be turned into cash.
7. The ___ ___ dictates the expansion/contraction of the money supply based on a deposit/withdrawal.
8. An increase in credit card fees can cause money demand to increase, resulting in the nominal interest rate ___.
10. The ___ is the entity who sees a loan as an asset.
11. A ___ is a macroeconomic event that causes a leftward shift of the money demand curve.
12. A hypothetical market for the money that is able to be borrowed.
15. A change in the aggregate price level, GDP, or the ability and costs of using money substitutes cause a change in the ___ ___.
17. The effect when the government is running a deficit and drives up interest rates. This leads to reduced investment spending.
19. Interest rates and bond values have a(n) ____ relationship.
20. Crypto, real-estate, gold/silver, and art are examples of a(n) ___ ___.

1. A bank's ___ ___ ___ can be calculated by dividing Demand Deposits by Reserves (Demand Deposits/Reserves).
2. ___ monetary policies are issued to correct an expansionary gap.
3. Demand Deposits are listed on this side of the bank balance sheet.
4. The Y axis in the money market is the ___ ___ ___.
5. M1 is currency in ___, demand deposits, and other liquid deposits.
9. The Y-axis on the loanable funds market graph.
13. The ___ ___ of holding cash is giving up the chance to earn money through interest and investing.
14. Recognition and impact ___ are the two reasons why it takes a while for the economy to respond to monetary policy changes.
16. Reserves, Excess Reserves, and Loans are listed on this side of the bank balance sheet.
18. ___ monetary policies are issued to correct a recessionary gap.