CHAPTER 13-16CH 13- MONEY
AND FINANCIAL INSTITUTIONS
Qualities of Money
Stability of value Portable and durable Uniformity Divisibility Recognizability Store of value Measure of value
Other Terms
Money supply Currency Demand deposits Near moneys Fractional reserve banking Reserve ratio Federal Reserve System
What does the Federal Reserve do? See page 232-233
1. 2. 3. 4. 5. 6.
Key terms
Purchasing power of money Demand pull inflation Cost push inflation
Who benefits from inflation?
Who does not benefit from inflation?
Chapter 14
See page 242 and draw a picture of the cycle
Define these… Recession Recovery Durable goods Housing starts Jobless claims
Key Indicators
CPI GDP Unemployment rate
Frictional Seasonal StructuralCyclical
Fiscal & Monetary Policy
Explain…
What is the discount rate? Reserve ratio?
Chapter 15- International Trade
Tariffs Quotas Export subsidies Barriers to trade– What are the arguments in
favor and against? WTO GATT EU NAFTA Foreign exchange market
Chapter 16- Globalization Globalization Good or bad? What is the relationship between
economic development and population growth?
Income growth in less developed countries Labor standards
The environment
Resources and incentives
Government regulation?
