Chapter 14 Review Money and Banking.

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Presentation transcript:

Chapter 14 Review Money and Banking

Concepts Money Easy Money Policy As an economic good. Determining value Defined Types and characteristics Easy Money Policy What is it? How does it effect the economy?

Chapter 14 – 1 Visual Page 409

Chapter 14 – 3 Visual Page 400

Concepts FOMC Federal Reserve What does it do? Its purpose? How the FED effects interest rates. What is its organization/makeup/structure When was it established? Why?

Concepts FDIC Continental Currency and Greenbacks M1 M2 What is its purpose? Why it was needed? Continental Currency and Greenbacks What is the historical significance? M1 M2

Chapter 14 – 3 Visual Page 405

Concepts What are bank runs? What are barter economies? Causes and solutions What are barter economies? Do they work? Why? What is a ‘liquid asset’?

Chapter 14 – 2 Visual Page 409

Chapter 14 – 2 Visual Page 395

Essay Describe M1 and M2. What is the difference between M1 and M2?

Essay What gives “money” it worth and value?

Essay Identify and be able to describe the 4 characteristics of money and apply them to the situation described in the passage.

Essay Using the situation given, what would be the impact on consumers if the FED action describe was taken?

Essay Identify and explain the tools used by the FED to monitor and conduct monetary policy.