Define barter exchange, commodity money, and fiat money, assignment help

MACRO QUESTIONS WEEK 4

Provide a brief answer to the following questions:

WEEK FOUR:

1) Define barter exchange, commodity money, and fiat money.

2) What is the Federal Reserve System? What are its makeup and its functions?

3) What is money?

4) What are characteristics of any item that is used as money?

5) What are functions of money?

6) What is Money Supply? What are the make-up of M-1? M-2 and M-3?

7) According to Keynesian economists, what are the main components of demand for money?

8) What is the relationship between investment and interest rate?

9) What is Investment Function?

10) What is Money Multiplier?

11) Define Discount Rate, Required Reserve Ratio, and Open market Operation.

12) What is Monetary Policy?

13) What are the major tools of monetary policy?

14) Define Prime Rate and Federal Funds Rate.

15) Define bank reserve, legal (or required) reserve, free reserve, and fractional banking system.

16) Describe how a banking system can create money.

17) Describe how monetary policy can close a recessionary or inflationary gap.

18) Define expansionary and contractionary monetary policy.