A(n) ________ is an item that is widely accepted as payment for goods and services.
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Monetary policy
________ is the use of regulations or actions by the central bank to influence the money supply.
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Contractionary monetary policy
________ includes actions designed to reduce the money supply, including selling securities, raising the discount rate, and raising the required reserve ratio.
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required reserves
The dollar amounts that a bank is required to hold as reserves
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negative relationship
The ________ between the interest rate and die quantity of loans demanded reflects the law of demand.
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money multiplier
The ________ tells the maximum amount that the money supply can increase for a given amount of excess reserves loaned out.
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total reserves
A bank's ________ are deposits that it has received but not lent out.
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M1 money supply
The ________ includes money in circulation: cash, demand deposits, travellers checks, and other checkable deposits.
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Barter trading
________ is the trading of goods and services directly for other goods or services, without using money.
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interest rate is below equilibrium
the quantity of loans demanded will be higher than the quantity of loans supplied, and there will be a shortage of loans available.
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Expansionary monetary policy involves
actions to increase the money supply, including lowering the discount rate, buying securities, or reducing the required reserve ratio.
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The discount rate
is the interest rate that the Federal Reserve charges banks for loans.
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