macro unit 4

3. rate at which central banks lends to commercial banks
5. highest liquidity - currency in circulation, checkable bank deposits, traveler's check
6. the stated or advertised interest rate on a loan or savings account before adjusting for inflation or compounding
8. something that serves as money but has no other value or uses (paper money coins)
9. M1 + saving deposits, time deposits, money market funds
11. loans + IOUs that represent debt that the govn't business or individual must repay
13. min amount of deposits that banks must hold by law
14. the amount of money that the banking system can generate with each dollar of reserves
16. a model representing the overall supply (savings) and demand (borrowing) of money available for loans in an economy
17. the ease in which an asset can be converted into cash without much loss of value

1. a place where govn't debt is bought and sold to provide liquidity
2. buying and selling of bonds and securities
4. bank reserves over and above their required reserves. this is what they loan out
7. ownership of a corperation
10. accounts where the owner can use or withdraw funds on demand, with no advance notice
12. something that performs the function of money and has intrinsic value (gold silver cigarettes)
15. the nominal interest rate adjusted for inflation, representing the true cost of borrowing or the actual return on savings/investments