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13 Cards in this Set

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  • Back

Freidman's money demand theory is different from keynesian because

freidman's demand is totally elastic

According to the quanity theory, if money supply increases

production increases

Using dollars to buy candy is an example of money being used as

a medium of exchange

The FED prefers to use________ for monetary policy

using discount policy

If the FED decreases the required reserves then

the money multiplier increases and the money supply decreases

The debasement problem

undermined the use of commodity money

The Glass-Steagal Act

separated commercial from investment banking

The 1927 banking regulation

McFadden act restricted the geographical expansion of banks

In the Free Banking Era

banks could issue their own notes

The effects of the Fed changing the discount rate is called

the bank lending channel

In the United States

the banking system is fragmented

The Mcfadden Act

encouraged efficiency and competition

The discount rate is generally _______the fed funds rate

lower