Increase in money holding? Decrease in money holding? Stayed the same? Flashcards
A person buys french fries at In N Out
They decreased their money holding.
With new higher interest rates, a person moves some of their checking account balance into an interest bearing savings account.
They decreased their money holding.
A person deposits cash into a checking account.
Money holdings stayed the same (because both are money)
A person transfers from a savings account to a brokerage account and buys Facebook stock
Money holding stayed the same.
A person withdraws cash from a bank savings account.
They increased their money holdings.
A person writes a check to pay for their monthly rent.
They decreased their money holding.
A person pays for dinner with a debit card.
they decreased their money holding.
A person charges dinner on their credit card.
Money holding stayed the same
A person writes a check to pay off that month’s charges on their credit card.
They decreased their money holding.
A person writes a check to buy some IBM stock
They decreased their money holding.
What is one way the Fed is political and thus not completely independent?
The Fed needs the protection and support of the president to block Congressional changes to the structure of the Fed.
What are the three ways the Fed is autonomous from the rest of the government?
- Governing board is appointed for long terms, thus isolated from politics.
- Self funded- not dependent upon Congress for funding,
- Can’t directly deal with the rest of the government (in the purchasing of financial securities).
Our coins and currency make up our fiat money. Who makes the coins?
The Mint makes the coins. They are made in Denver and Philadelphia
Our coins and currency make up our fiat money. Who makes the currency?
The Bureau of engraving and printing makes currency. Currency is made in Washington DC and Forth Worth.
Why are savings accounts not considered money?
Because savings accounts are a special type of account that someone else has permission to use ( loanable funds).
