Final Grade for Honors Economics Q4

6. The minimum amount of cash reserves a bank must legally hold under Federal Reserve regulations.
11. A narrow measure of the money supply including currency, demand deposits, and checkable deposits.
12. A policy that decreases the money supply and increases interest rates to slow inflation.
13. A broader measure of the money supply including M1 plus savings deposits and small time deposits.
14. The purchase and sale of U.S. government bonds by the Fed to alter the money supply.
16. A measure used to set prices and record debts.
17. The total quantity of money available in an economy.
20. Variables measured in monetary units.
21. The mathematical relationship relating the money supply to nominal GDP.
24. The ease with which an asset can be converted into the economy's medium of exchange.
27. The amount of money the banking system generates with each dollar of reserves.
29. The rate that the Federal Reserve pays banks on the funds they hold in their accounts at the Fed.
30. Variables measured in physical units.
31. The interest rate on the loans that the Fed makes to banks.
32. An item that buyers give to sellers when they purchase goods and services.
33. The exact fraction of deposits that banks are legally required to keep on hold.

1. A theory asserting that the quantity of money available determines the price level.
2. Money that takes the form of a commodity with intrinsic value.
3. A banking system in which banks hold only a fraction of deposits as reserves.
4. The Fed group that meets to make crucial decisions about monetary policy.
5. The rate at which money changes hands in the economy.
7. Reserves banks hold over and above the legal minimum requirement.
8. Any asset that can be used to purchase goods and services.
9. A policy that increases the money supply and decreases interest rates to boost output.
10. The proposition that changes in the money supply do not affect real variables.
15. An item that allows people to transfer purchasing power from the present to the future.
18. Regulations on the minimum amount of reserves that banks must hold against deposits.
19. Money without intrinsic value that is used as money because of government decree.
22. Value that an item has even if it were not used as money.
23. The theoretical separation of nominal variables and real variables.
25. Deposits that banks have received but have not loaned out.
26. The interest rate at which banks make overnight loans to one another.
28. The cost of borrowing money or the reward for saving it, expressed as a percentage.