MACRO-ECONOMICS: Unit 4

7. The interest rate unadjusted for inflation.
8. The interest rate banks charge each other for overnight loans.
10. Duncan Pringle.
13. Failure to repay a loan.
14. The ease with which an asset can be converted into cash.
15. A balance of individual ownership and government regulation.
16. The concept that money available now is worth more than the same amount in the future.
17. Policies used to improve a government's budgetary position during a recession.
18. The minimum percentage of deposits a bank must hold, set by the central bank.
19. Reserves held beyond the required amount, used for lending.

1. Claims on future income or wealth, such as stocks, bonds, and cash.
2. Government control of production, wages, and prices.
3. Central bank actions (example: changing interest rates) to manage the money supply.
4. A formula that calculates the maximum amount of money commercial banks create from initial deposits through fractional reserve banking.
5. The percentage of deposits that banks must hold.
6. An IOU that pays interest, with prices inversely related to interest rates.
9. The interest rate adjusted for inflation.
11. The price of borrowing money, determined by supply and demand for money.
12. When a government's total expenditure exceeds its revenue