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?