international økonomi ted talk

Question 1

The Barter Economy:

Answer 1

It refers to an economy where goods and services are exchanged directly for other goods and services without the use of money.

Question 2

A Means of Payment:

Answer 2

Money serves as a medium of exchange, facilitating transactions by allowing people to buy and sell goods and services.

Question 3

A Store of Value:

Answer 3

A store of value is a commodity, asset, or money that retains its value, or purchasing power, and does not depreciate.

Question 4

A Unit of Account:

Answer 4

something that can be used to value goods and services, record debts, and make calculations

Question 5

The Monetary Base:

Answer 5

The monetary base: the sum of currency in circulation and reserve balances (deposits held by banks and other depository institutions in their accounts at the Federal Reserve).

Question 6

The Money Supply (M1, M2, M3):

Answer 6

These are various measures of the total amount of money circulating in an economy, including cash, checking accounts, and other liquid assets. - M1, M2 and M3 are measurements of the United States money supply, known as the money aggregates. M1 includes money in circulation plus checkable deposits in banks. M2 includes M1 plus savings deposits (less than $100,000) and money market mutual funds. M3 includes M2 plus large time deposits in banks.

Question 7

Certificates of Deposits

Answer 7

Short-term bonds issued by banks and purchased by the central bank as a tool for managing liquidity in the banking system.

Question 8

The Current Account:

Answer 8

Banks’ accounts held at the central bank used for short-term liquidity management.

Question 9

Monetary Policy Loans:

Answer 9

Loans provided by the central bank to commercial banks as a way to influence interest rates and money supply.

Question 10

The Discount Rate:

Answer 10

The interest rate charged by the central bank on loans provided to commercial banks.

Question 11

Money Market:

Answer 11

The market where short-term funds are borrowed and lent.

Question 12

Demand in the Money Market:

Answer 12

Determined by factors like GDP, transaction demand, and the price level.

Question 13

Money Market Rates:

Answer 13

Reflect the equilibrium between supply and demand for short-term funds.

Question 14

Money Supply:

Answer 14

Controlled by the central bank and private financial institutions.

Question 15

CIBOR (Copenhagen Interbank Offered Rate) and CITA (Copenhagen Interbank Tomorrow/Next Average):

Answer 15

Benchmark rates for interbank lending in Denmark.

Question 16

The Horizontal Structure (Yield Curve):

Answer 16

Shows the relationship between market rates for bonds with different maturities.

Question 17

The Vertical Structure:

Answer 17

Illustrates market rates for bonds with the same maturity.

Question 18

The Transmission Mechanism:

Answer 18

• Describes how changes in interest rates affect GDP and employment.