Macro Econ Final Flashcards
1
Q
Fed had 2 jobs:
A
Regulate the banks
Control quantity of money
2
Q
Buy bonds
Sell bonds
A
Increase money supply -buy
Decrease money supply- sell
3
Q
Three functions of money:
A
Medium of exchange
Unit of account
Store of value
4
Q
Liquidity
A
Rapidity with which an asset can be converted into a medium of exchange
5
Q
Intrinsic value
A
Item would have if not used as money
6
Q
Commodity money
A
Money with intrinsic value
7
Q
Fiat money
A
Money without intrinsic value
